Classic economics story

The story here would be something I would tell my sons and grandsons in the future, to influence them to become true economists like myself. :P This story would be a perfect bedtime story.

Once upon a time, there was a farmer. The farmer knew not how best to plough his farm. But he tried anyway. Over time he managed to perfect his ploughing methods and became the most efficient he could be.

But unfortunately, the land was plentiful. Many new farmers saw that the first farmer was making a huge fortune from his land and decided to start up new farming land to do as the farmer did. The farmer began to face serious competition and soon he saw the price of his agricultural crops fall. The farmer, as with all the other farmers, in the end were making zero profits in the long run and all of those farmers were the most efficient they could be.

What are the lessons to be learnt here?

If you were the farmer, what would you do?

The best way to respond to the new farmers were a few. For example, the farmer could have sold his products with the tagline "produced fresh from McDonald's farm". Or he could have bought many new farm lands with his profits and expanded his business. Or he could have fought for restricted permits to farm the land. As long as the farmer fought for his own, he would not have ended up in the sad ending that he did.

Therefore, the farmer should always stay away from products which everyone else can replicate and should try to make some barriers so that new farmers cannot come and compete with the farmer.

The farmer managed to maintain his profits and land and lived happily ever after.

--the end--