Over the past twenty years, the number of small family farms has fallen significantly, and in their place there are fewer, but larger, farms owned by corporations.Which of the following best explains this trend?
A)Diseconomies of scale in farming
B)Economies of scale in farming
C)Diminishing returns to labour in farming
D)Declining productivity

Question

Quizplus · Accepted Answer

The trend of smaller family farms being replaced by larger corporate farms is best explained by economies of scale in farming. Corporate farms are able to take advantage of economies of scale by having larger operations which allow spread fixed costs over more units of output, increasing efficiency and profitability.

Over the Past Twenty Years, the Number of Small Family