Economic Principles in Agriculture - JSS1 Agricultural science Lesson Note

1. Law of Diminishing Returns: As more inputs are added to a fixed quantity of land, there is a point where the additional output per unit of input decreases.

2. Law of Supply and Demand: Prices of agricultural products are influenced by the balance between supply and demand in the market.

3. Economies of Scale: Larger agricultural operations may experience lower average costs per unit of production due to efficiencies in management and production.

4. Opportunity Cost: The value of the next best alternative is foregone when a choice is made. Farmers must consider opportunity costs when making decisions about resource allocation.