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

Economies of scale in farming have allowed larger farms to produce more output at a lower cost per unit, making it more difficult for small family farms to compete. Additionally, some corporations have been able to take advantage of government subsidies and tax breaks, giving them a financial advantage over smaller farms.

Over the Past Twenty Years, the Number of Small Family