Agricultural Economics

The law of returns to scale explains the proportional change in output with respect to proportional change in inputs.  In other words, the law of returns to scale states when there are a proportionate change in the amounts of inputs, the behavior of output also changes.  The degree of change in output varies with change in the amount of inputs. For example, an output may change by a large proportion, same proportion, or small proportion with respect to change in input. On the basis of these possibilities, law of returns can be classified into three categories: i. Increasing returns to scale ii. Constant returns to scale iii. Diminishing returns to scale 1. Increasing Returns to Scale : If the proportional change in the output of an organization is greater than the proportional change in inputs, the production is said to reflect increasing returns to scale. For example, to produce a particular product, if the quantity of inputs is doubled and the increase in output is more than...

Meani ng of Production Function: In simple words, production function refers to the functional relationship between the quantity of a good produced (output) and factors of production (inputs). “The production function is purely a technical relation which connects factor inputs and output.” Prof. Koutsoyiannis In this way, production function reflects how much output we can expect if we have so much of labour and so much of capital as well as of labour etc. In other words, we can say that production function is an indicator of the physical relationship between the inputs and output of a firm. The reason behind physical relationship is that money prices do not appear in it. However, here one thing that becomes most important to quote is that like demand function a production function is for a definite period. It shows the flow of inputs resulting into a flow of output during some time. The production function of a firm depends on the state of technology. With every development in technol...

  Today, India has the 2nd highest crop output in the world. Different types of farming systems are followed in India, according to the locations where they are most suitable. The farming systems that majorly contribute to the agriculture sector in India are subsistence farming, organic farming and commercial farming. Due to India’s geographical location, certain parts experience different climates, thus affecting each region’s agricultural productivity differently. There are three types of farming/types agriculture and they are as follow:- 1.  Subsistence farming Subsistence farming is described as family  farming  because it meets the needs of the farmer’s family. It required a low level of technology and household labour.  These types of farming produce small output. They do not use high yielding varieties of old seeds and fertilizer. Facilities like electricity and irrigation are not available for them. Most subsistence farming is done manually.  Subsis...