COST-EFFECTIVE USE OF AGRICULTURAL LAND: A CASE STUDY
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By: Dmitri Mihailovici PARMAKLI, V. DOGA
JEL: Q14, M41
Keywords: efficiency of land exploitation, cost of production, agricultural crop yield, net profit, marginal profit, profitability coefficient
The article gives an evaluation of modern efficiency of land exploitation and explains the mathematical link between the production cost and the crop yield. It introduces a number of formulas which allow computing profitability per 1 quintal of production and per 1 hectare of land as well as profitability growth due to growth of the crop yield. The article also introduces the methods of computing marginal profit and the crop yield which provide the desired level of profitability.
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