Title: Explain the relationships between inputs and outputs.
Course: Operating the Farm Business (18301-III) > Section: Applying Economic Principles Specific to Agricultural Production

Explanation should include

- a definition of the law of diminishing returns
- a description of the relationship of adding an additional unit of input and the effect on output
- considerations related to aspects such as
  - human capital
  - equipment costs
  - land costs
  - capital investment.

Process/Skill Questions:

- What is a break-even analysis, and how is it applied in agricultural production?
- What is the law of diminishing returns?
- How would one evaluate profit, using the formula: marginal cost = marginal revenue?