Problem
The milk industry has a number of interesting aspects. Provide economic explanations for the following:
a. Fluid milk is 87 percent water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced?
b. The United States has regional milk-marketing regulations whose goals are to make each of the regions self-sufficient in milk. What is a likely reason for this?
c. A U.S. senator from a milk-producing state has been quoted as saying, "I am absolutely convinced . . . that simply bringing down dairy price supports is not a way to cut production." Is it likely that he is correct? What is a probable reason for his statement?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.