i NATIONAL OPEN UNIVERSITY OF NIGERIA SCHOOL OF SCIENCE AND TECHNOLOGY COURSE CODE:AEC 403 COURSE TITLE:Agricultural Production Economics and Resources Management
ii Course Guide Course Code AEC 403 Course Title Agricultural Production Economics and Resources Management Amos, T.T. Department of Agricultural Economics and Extension, Federal University of Technology, PMB 704, Akure, Ondo State.
iii 1.0 INTRODUCTION 1.1 The Course 1.2 Course Aims 1.3 Course Objectives 1.4 Working through the Course 1.5 The Course Material 1.6 Study Units AEC403: Agricultural Production Economics and Resources Management (3 Units)1.0 INTRODUCTION Economics has been defined in a variety of ways and has been a subject of controversy among eminent economists. One school of thought defined its scope to cover consumption, production, exchange and distribution of wealth by men engaged in the ordinary business of life. Production is central to this school of thought as goods and or services are produced for the consumers who are at the other end of the production process. The producer uses some inputs called resources in an important and intricate proportions to produce the final commodity. Thus you will be looking at the subject matter of production economics and resource management in this course. 1.1 THE COURSE This course Guide tells you, in a nutshell, what you should expect from going through this material. The producer makes on daily basis, decisions which are economic in nature but may look ordinary to others. Resources are limited in terms of availability and access. The availability does not confer accessibility as this is related to price of the resources and the income of the entrepreneur. As we look into production theory, we see that, as the individual entrepreneur tries to satisfy the objective set through the limited resources, the households’’ utility must be in focus. Production involves costs which could be either variable or fixed. Producers always try to produce the maximum possible, incurring the least cost, so as to make the maximum gain possible. The difference between the cost of production and the revenue from the sale of output represents the profit of the producer. The producer always aims at maximizing the profit except in some exceptional cases. 1.2 COURSE AIMS
iv The aim of this course is to provide an understanding of the economic decision-making process of the firm. The individual unit is part and parcel of the total economy. His/her decision has some implications for the running of the economy. In this course, we shall link the decisions made by the producer with the total economy. 1.3 COURSE OBJECTIVES This course, in addition to its aims, is set to achieve some objectives. At the end of this course, you should be able to: oUnderstand the nature of the decision making process of an economic unit.
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