As a Result of Legislation to Establish a Floor Price

Multiple Choice

As a result of legislation to establish a floor price for milk, most dairy farmers will

A) end up earning a normal rate of return in the long run
B) end up earning a zero rate of return in the long run
C) end up earning a negative rate of return in the long run
D) benefit from the increased cost of specialized resources used in dairy farming
E) suffer if they own specialized resources at the time the legislation is passed