Over the Past Twenty Years, the Number of Small Family

question 37

Multiple Choice

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

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Definitions:

Merger

The combination of two or more companies into a single entity, often to leverage synergies, expand markets, or enhance efficiencies.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often occasioned by bankruptcy or dissolution.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Logical Incrementalism

A strategy and management philosophy where complex decisions are broken down into smaller, manageable parts, allowing for incremental problem solving and implementation.