AAB3250: Agricultural Production Economics [45 LH]
PURPOSE OF THE COURSE
To equip the learner with knowledge on resource productivity and maximization of objective functions of farming systems.
EXPECTED LEARNING OUTCOMES
By the end of the course the learner should be able to:-
- Determine optimal enterprise combinations
- Evaluate production functions
- Analyze factors of production
- Evaluate factor-product relationship, factor-factor relationship and product- product relationship.
- Analyze factors which influence existing production pattern and resource
Introduction to scope and methods of economics, factors of production, production decisions and relations, characteristics of agricultural production. Production functions, fixed and variable inputs, economic optimum factor product relationship. Isoquants, optimal resource allocation, Principles of substitution, least cost combination. The production possibility curves (PPC Curves), Rate of product transformation. Short run and long run costs, profit maximization, economies and dis-economies of scale. Returns to scale. Risk and uncertainty in agricultural production.