Consider the motivation of farmers for the modernization of agriculture. Which of the following equilibrium is possible?

Consider the motivation of farmers for the modernization of agriculture. Which of the following equilibrium is possible?



(a) Subsistence agriculture - every farmer grows crops that enable them to be self-sufficient
(b) specialization in a single (cash) crop - requires good access to markets; contract enforcement; quality control
(c) Both are possible.
(d) None are possible.


Answer: C


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