Suriland cannot both export wheat and keep bread plentiful and affordable in Suriland. Accordingly, Suriland’s wheat farmers are required to sell their crop to the government, which pays them a dollar per bushel less than the price on the world market. Therefore, if the farmers could sell their wheat on the world market, they would make a dollar per bushel more, less any additional transportation and brokerage costs they would have to pay.
Which of the following, if true, most seriously weakens the argument?
Suriland’s wheat farmers have higher production costs than do farmers in many other wheat- producing countries.
Sale of a substantial proportion of Suriland’s wheat crop on the world market would probably depress the price of wheat.
The transportation and brokerage costs that Suriland’s farmers would face if they sold their wheat outside Suriland could amount to almost a dollar per bushel.
Suriland is surrounded by countries that do not import any wheat.
The price of a bushel of wheat on the world market occasionally drops below the average cost of producing a bushel of wheat in Suriland.
D--> Whether Suriland's wheat is sold to near or distant countries is immaterial to the argument; note that the conclusion includes the qualification less any additional transportation costs.
E --> This indicates that Suriland wheat farmers might sometimes lose money on their wheat if selling on the world market. This does not indicate that they would not lose less on the world wheat market than they would selling to the government.
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