Question

Microeconmics: Elasticty

Why is farm output more stable than industrial output?

Answer 1

For a farm, the main factor of production,i.e., land is fixed.
If an industrial firm receives a high demand for its product, it can always hire more workers,buy new machines & equipments, etc, in order to increase production.
But farms can't do this so easily. Crops require a lot of land to grow. Most farms have a fixed amount of land, and since the land nearby is already occupied by other farms, they can't really increase the amount of land.

However, if a farm will use advanced technology that allow farmers to grow more crops per acre, then the output can increase. But usually farms are limited by the amount of land they have.

Therefore, Why is farm output more stable than industrial output