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Decreasing marginal rate of returns:
• Addition of one unit of input resulted in increasing the
output in decreasing rate. It is explained by following
table.
DECREASING MARGINAL RATE OF RETURNS
Quadratic production/Fertilizer response:
Field experiments are conducted with different level of
fertilizer.
The yield response to different level of fertilizer are
fitted in to a mathematical equation.
Based on the shapes of the curve from the equation ,
economic optimum doses of inputs are calculated and
recommended to the farmer.
Y=a+b+cx2
Where
a , b , c=constants ,
x=production factor
Curve fitting:
Generally the response to fertilizers is quadratic.
Thank you
Submitted By:
M.Eshwar,
RAM/15-64,
Dept. of Soil Science.