Course Content
Introduction to agribusiness management- definition, Scope and importance; concept of business management
0/5
Basic concept and definitions of firms, plant, industry and their interrelationships with respect to agricultural production
0/1
Agribusiness environment, management systems, and managerial decisions
0/3
Cooperatives- concept, definitions, role, organization, structure, cooperative law and bylaws, developing agriculture cooperatives, cooperative marketing, cooperative farming
0/6
Learn agribusiness management, marketing and cooperatives with Braimy- B.Sc Agriculture
About Lesson

There are two types of advantages in the production of farm commodities:

a) Absolute advantage:

– It is the size of the margin or difference between the cost and return from using productive input.

–  If the margin is larger for one farm commodity in one region then that region has absolute advantage in producing that commodity.

b) Comparative advantage:

– A region may have more absolute advantages for more than one commodity but a farmer should specialize in that commodity which have more return per unit of investment among all other alternatives.

-Also comparative advantage occurs when one country can produce a good or services at a lower opportunity cost than another.

– It occurs due to differential productivity and scarcity of land, labor and capital. 

– This means a country can produce a good relatively cheaper than other country or region.

– Theory of comparative advantage states if country specialize in producing goods where they have a lower opportunity cost then there will be increase in economic welfare.


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