In recent years,the number of farms in the U.S.has fallen while the average farm size has increased.Which of the following concepts may explain this phenomenon?
A)diminishing marginal returns
B)declining productivity
C)diseconomies of scale
D)economies of scale
E)poor economic reforms

Question

Quizplus · Accepted Answer

Economies of scale occurs when a company can increase production and lower its average cost per unit by spreading fixed costs over more units of output. In the case of agriculture, larger farms are able to invest in more advanced technology and machinery, which allows them to produce more efficiently and at a lower cost per unit. As a result, they are able to capture more market share and push smaller farms out of business.

In Recent Years,the Number of Farms in the U