In the Farm households model,when transfer costs prevent farm households from participating in labor markets,what will happen with increases in crop prices?

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When transfer costs prevent farm households from participating in labor markets, increases in crop prices will lead to both a shift up in VMPL (the value of marginal product of labor) and HLS (the household labor supply curve). This is because higher crop prices increase the return to agricultural production, making the opportunity cost of household labor (foregone farm output) higher. As a result, households will demand higher wages to compensate for the lost farm output, which shifts the VMPL curve up. At the same time, households will choose to work more in agriculture rather than supplying labor to other sectors, so the HLS curve also shifts up. Total farm output may or may not increase, depending on the magnitude of the shifts in VMPL and HLS and the shape of the production function.

In the Farm Households Model,when Transfer Costs Prevent Farm Households