Originally, farm cooperatives were formed to provide better prices for farmers. These groups now cooperatively buy farm equipment and other products, and realize economies of scale by banding together for these things.

Question

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By participating in a larger group, it is more affordable for farmers and other business people to buy certain items that they would normally pay a lot more to purchase. By forming a cooperative, they enjoy economies of scale.

Originally, Farm Cooperatives Were Formed to Provide Better Prices for Farmers