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6. A table grape grower in the Western Cape faces a substantial increase in her costs following a rise in minimum wages and substantial increases
6. A table grape grower in the Western Cape faces a substantial increase in her costs following a rise in minimum wages and substantial increases in electricity and water tariffs. She is currently earning a normal return on capital (zero economic profit). a. Explain why the grower cannot pass on her cost increases by raising the price of table grapes she produces. b. Discuss some short-term and long-term strategies the grower can introduce to maintain her profitability following these cost increases. (10)
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