Under marketing orders instituted during the 1930s and administered by the U. S. Department of Agriculture, orange growers in California and Arizona have been successful in behaving as a cartel in the fresh orange market. Despite the ability of California and Arizona growers to rely on marketing orders to cartelize the fresh fruit market, explain why, from a general equilibrium perspective, marketing orders have had only a limited effect on grower profits because of the fact that fruit can be diverted to secondary, processed food markets such as orange juice concentrate.

  • CreatedNovember 14, 2014
  • Files Included
Post your question