The family consumes none of its own farm product

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Reference no: EM13715650

Say that a person has observed the following: family farms in a developing country tend not to consider family labor which is used to work the farm (weeding, harvest, etc) as a cost: that is, family farms in a developing country tend not to value family labor. And say that there are no other costs involved in farming. In addition, assume that every family farm sells all of its output to a local market in which it has a monopoly. Furthermore, assume that the family consumes none of its own farm product.
In this case, what is the elasticity of demand at the level of output chosen by this profit maximizing family farm?

Reference no: EM13715650

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