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
- the effect of additional units of input on output
- the importance of break-even analysis
- considerations related to aspects such as
  - human capital
  - equipment costs
  - land costs
  - capital investment
  - recordkeeping (data).

Process/Skill Questions:

- What is a break-even analysis, and how is it applied in agricultural production?
- What is the law of diminishing returns?
- What should the relationship be between marginal cost and marginal revenue in order to maximize profit?
- How does data inform the agricultural producer’s decision-making?