3 ms·
At some point, the cost to package & bring the milk to the store will exceed the price of selling the milk, so you’ll hit a price floor regardless. And it beco
by setr 8y ago
At some point, the cost to package & bring the milk to the store will exceed the price of selling the milk, so you’ll hit a price floor regardless.
And it becomes the same issue: you now can’t sell the excess milk but you still have all the production facilities. So you store it in your buffer and hold onto production, and eventually if you end up overflowing the buffer, you’ll have no choice but to drop production (which is expensive to bring back up, so highly avoidable)