Both supply and demand function seems sufficient to household modeling while modeling it as a firm requires a more interesting topic, nonseparable modeling to account for consumption in the production process. Moreover, incorporating financial issues also increase both dimension and complexity of farm firm decision modeling. With the objective of developing an adaptive decision-making model that serves as investment advisory especially to financially constrained households, by utilizing the recent approach, Machine learning, and /or Exploratory modeling for both crop yield and financial risk decision. The assumption considered is that farmer's income depends both on the crop yield and market scenarios
Gedefaye Achamu
Production theory in economics outlines the rules by which a firm must decide how much of each item it sells and how much it produces, as well as how much raw material (i.e., fixed capital and labor) it employs and how much it will utilize.
To begin, cost theory is a derived theory, developed from production theory. Cost is very important in determining the price of a commodity. Second, the production theory may be utilized to determine the rewards for an input.
In economics, a theory of production is an attempt to explain the rules that govern how a business entity determines how much of each item that it sells (its "outputs" or "products") it will make.
You can use muliattribute utility theory and optimization or optimal control in dynamic cases (differential models).Example:
Renewable Resources and Value Based Complex Forest Management, Encyclopedia of Information Science and Technology, Fifth Edition 2020-2021
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