Economics · Agricultural Economics
The 'inverse farm-size productivity relationship' in Indian agriculture suggests that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Farm size and productivity are completely uncorrelated in the Indian context
- 2Larger farms are always more productive due to economies of scale and better access to credit and technology
- 3Smaller farms have higher output per unit of land, likely because of more intensive use of family labour and lower supervision costs✓
- 4The relationship holds only for irrigated farms and not for rain-fed agriculture
Correct answer
Smaller farms have higher output per unit of land, likely because of more intensive use of family labour and lower supervision costs
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