Due to high fixed costs relative to variable costs in farming, farm production is quite sensitive to price changes in the short run.

Name: Due to high fixed costs relative to variable costs in farming, farm production is quite sensitive to price changes in the short run.
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Question

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Farming typically has high variable costs relative to fixed costs, making it less sensitive to short-term price changes as farmers continue to produce to cover variable costs.

Due to High Fixed Costs Relative to Variable Costs in Farming