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Study Material Course No.: Ag Econ 122 (Production ...

Study Material Course No.: Ag Econ 122 (Production Economics and Farm Management) Credit Hours : 1 + 1=2; Semester:II Prepared by Virender Kumar Professor ( agricultural Economics) Department of agricultural Economics, Extension Education & Rural Sociology, COA, CSKHPAU, Palampur-176 062 (HP), India Course Contents (Theory) Production Economics: Meaning, definition. Nature and scope of agricultural Production Economics. Basic concepts and terms. Meaning and types of production functions Laws of returns: Increasing, constant and decreasing. Factor-product relationship. Determination of optimum input and output. Factor-factor relationship. Product-product relationship. Type of enterprise relationship. Returns to scale: meaning, definition, importance. Farm management definition, scope, importance. Typical farm management decisions. economic principles applied to the organization of farm business.

agricultural production economics involves the study of factor-product, factor-factor and product-product relationships, the size of the farm, returns to scale, credit and risk and uncertainty, etc.

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