Why did sugar plantations produce such high profits? (1 point)

Answer 1

Sugar plantations produced such high profits primarily due to the high demand for sugar in Europe and America during the time period. This demand created a steady market for the produced sugar, allowing plantations to sell their product at high prices. Additionally, sugar was a luxury item that only the wealthy could afford, further driving up its value. The economies of scale achieved on large sugar plantations also contributed to high profits, as the large-scale production allowed for cost-saving measures and increased efficiency. Finally, sugar plantations relied heavily on slave labor, which significantly reduced labor costs and further boosted profits.