As indicated in the previous chapter, the structural arrangement of the industries that provide inputs to agriculture and buy the products produced by agricultural firms tends toward the monopoly position. They are made up of a few large firms. Each has a sizable share of the market, and actions of each have an impact on market price. They do not act independently of each other because they are very much aware of potential actions of other firms in the industry. Those who sell to agriculture are price makers with respect to prices received for their products. The buyers of agricultural products are also price makers with respect to the prices at which they offer to buy products from agricultural firms.
KeywordsStructural Arrangement Family Farm Structure Issue Competitive Model Pure Competition
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