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By M. J. Stabler (auth.)

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Thus, at a number of points along the chain the activities of industries and bodies affected by forces outside agriculture exert pressures within it. At a purely theoretical level agricultural economists analyse the determination of price, the degree of competition, market efficiency, the effect of technical change, differences in scale and costs and profits, by drawing on the vast body of more general economic analysis of the firm and industry. 1 At a more empirical level economists have concentrated their attention on the pattern and effect of changes in marketing.

72], [83]. The studies tended to take a comparative approach on the market systems and differing policies for agriculture, but the likelihood of entry also led to a reappraisal of British policy on marketing. K. policies on marketing are superior. Discussion of this point moves the examina1 The reader is invited to look at marketing boards in the light of the economic theory on discriminating monopoly. 41 tion of marketing margins and organisations towards the appraisal of pricing policies, and this is considered below in Chapters 3 and4.

Generally speaking, the forces acting on agriculture have encouraged migration of hired labour without recourse to policy measures. It is the farmer who has caused most concern, but even here there are 'natural' forces at work so that policy is aimed at varying the rate of migration. The aim of most measures is to raise the incomes of those remaining in agriculture although it is thought that efficiency will also increase as a result. III. Farm structure changes - the rather complex economic relationships between tenure, size, layout, specialisation, scale, factor combination and technical change have been outlined in Chapter 1.

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