Despite the ability of california and arizona growers

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Question: 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 behaving as a cartel in the fresh orange market. Despite the ability of California and Arizona growers to rely on market- ing 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 concerated sach as orange juice concentrate.

Reference no: EM132197751

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