In Recent Years, the Number of Farms Has Fallen While

question 64

Multiple Choice

In recent years, the number of farms has fallen while the average farm size has increased. Which of the following concept may explain this phenomenon?​

• A)Diminishing marginal returns
• B)Declining productivity​
• C)Diseconomies of scale​
• D)Economies of scale​
• E)Poor economic reforms​

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Definitions:

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Long-Term Liquidity

Measures a company's ability to meet its long-term financial obligations, indicating financial health over a prolonged period.

Contingent Liability

A potential financial obligation that may occur in the future, depending on the outcome of a specific event.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.