Question

    ………………. helps in deciding the allocation of scarce resources among crop and livestock enterprises for maximum profit?

    A Factor-Product Relationship Correct Answer Incorrect Answer
    B Factor-Factor Relationship Correct Answer Incorrect Answer
    C Product Product relationship Correct Answer Incorrect Answer
    D Product-Factor Relationship Correct Answer Incorrect Answer

    Solution

    Factor-Factor relationship is typically a question of identifying the optimum or least-cost combination of resources to produce a certain amount of output. Minimisation of cost of production depends on the cost of inputs, price of outputs and on the marginal rate of substitution of factors.

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