Final answer:
In the real world, agribusiness firms change output combinations based on relative prices.
Step-by-step explanation:
In the real world, agribusiness firms change output combinations based on relative prices.
Agribusiness firms are constantly analyzing the prices of different crops and livestock and adjusting their production accordingly to maximize their profits. For example, if the price of corn is high relative to the price of soybeans, an agribusiness firm may decide to produce more corn and less soybeans.