Commercial farmers, based on their large production, should generate high incomes. Why is the reverse often true?
A.Applying fertilizers and pesticides diminishes the crop’s desirability, dropping prices.
B.Subsistence farmers undercut prices with low labor costs.
C.The von Thünen model correctly predicts farms can become too large.
D.Farmers are producing more food than is demanded by consumers.
E.The government refuses to subsidize farmers when commodity prices are low.
D.Farmers are producing more food than is demanded by consumers.
Explanation: When production becomes large, price can drop substantially lowering the revenue.
Commercial farmers, based on their large production, should generate high incomes. Why is the reverse often...