The objective of this course is to enable the students to learn the basis of the theories of production economics, to make them comprehend the methods of production economics for solving resource use problems in farms and to provide them with the skills for transferring these methods into practice.

Definition of production economics, aims and relationships with other disciplines,, Characteristics of agricultural production,, Production and cost functions (law of diminishing returns, basic concepts, classical production function, cost function), Factor-product analysis (optimum input usage),, Factor-factor analysis (relationships between inputs, isoquant curves, marginal rate of substitution, optimum combination of inputs),, Product-product analysis (relationships between products, production possibilities curve, optimum combination of products),, Economies of scale,, Technical development and agriculture.