ASSIGNMENT 1 [Most of the questions are from the course book activities] – 10% of course

assessment.

Due Date: Friday 18th September 2020

Instructions:
i. Answer ALL questions
ii. Minimum words for Q1, Q2 and Q3 (50‐150
words)

Assignment 1 Questions:

1. What is your definition of management? (0.5 mark)

2. What forces have caused farmers to become larger? Which of them are likely to continue? How
can smaller farm businesses compete successfully? (1.5 marks)

3. Define the concept of production function. Describe three zones/regions/stages of a typical

agricultural production function. Use graphical illustration if need be. (5 marks)

4. Explain a method of finding optimum (profit maximizing) level of a farm input used in
production of an output. Illustrate with some example based on hypothetical factor‐product
relationship data about a crop. (3 marks)

5. Explain the principle used to find the least cost combination of two or more variable inputs in
producing a fixed amount of a farm product. (3 marks)

6. In Table 1 below, assume the prices of both the input and output have doubled.
i. Calculate the TCs and the TRs and determine the profit maximizing input level for the
given prices.
ii. Now, assume both prices have been cut in half and repeat the process. EXPLAIN YOUR
RESULTS.
Note: [Nitrogen Price = $0.35 per lb; Corn Price = $3.50 per bushels] – (5 marks)

Input Level Nitrogen Total Physical Total Cost Total Profit

(units) Applied Product (TPP) (TC) Revenue $
(lbs) (bu) ($) (TR)
($)
0 0 130 500

1 25 148

2 50 162

3 75 170
 4 100 177

5 125 180

6 150 182

7 175 183

8 200 183

The following questions are from the AG212 Course Book.

7. Activity 3.10 (5 marks)

8. Activity 3.12 (5 marks)