📚 Learning Guide
Production Advantage
medium

How might the adoption of cutting-edge agricultural technology impact a farmer's comparative advantage in producing crops?

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Choose the Best Answer

A

It can lower production costs, allowing the farmer to produce at a lower opportunity cost.

B

It can increase the number of crops produced without affecting costs.

C

It can make the farming process more labor-intensive, reducing efficiency.

D

It can lead to a decrease in market demand for all agricultural products.

Understanding the Answer

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Answer

Adopting cutting‑edge agricultural technology lets a farmer produce more output with the same or fewer inputs, so the farmer’s opportunity cost for each crop falls. This shift can make the farmer relatively better at growing certain high‑value crops compared to competitors who use older methods, giving them a comparative advantage in those products. The technology also opens the possibility of specializing in crops that were previously too risky or expensive, because precision tools lower the risk of crop failure and improve yields. For example, a farmer who installs a soil‑sensor system can grow organic tomatoes more efficiently, allowing them to sell at a premium while competitors still use conventional irrigation and lose some market share. Thus, technology can reshape which crops a farmer can profitably focus on and strengthen their position in the market.

Detailed Explanation

Using new tech lets a farmer grow crops more cheaply. Other options are incorrect because Many think new tech only boosts the number of crops but does not affect cost; The idea that tech makes farming harder is a misconception.

Key Concepts

Technological Innovation
Comparative Advantage
Topic

Production Advantage

Difficulty

medium level question

Cognitive Level

understand

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