(a) Consider a family farm that is in the surplus labor phase. Now suppose that some members...

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(a) Consider a family farm that is in the surplus labor phase. Now suppose that some members migrate to work elsewhere. Describe what happens to the average income of the family farm.

(b) Reconcile your observation with the assertion that the supply curve is perfectly elastic (or flat) in the surplus labor phase of development. In other words, describe when the observation in (a) is consistent with the observation in this paragraph.

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