Conception of the model of agriculture with production and non-production function

Abstract

The article deals with an optimisation of the relation between production and non-production functions of agriculture. In the model, a two-product production process is presupposed, the result of which is agricultural production and a complex of other effects arising in agriculture. To obtain them, two aggregated inputs - capital and labour - are used. To maximise the summary economic result, the procedure of derivation of the optimal extent of both production processes proceeding as well as non-production effects in minimisation of both inputs in their summary is worked out in the article. In the article, the knowledge of the research gained in framework of solution of the institutional research intention MSM: 411100013 "Efficient integration of the Czech agrarian sector into the frame of the European structures - presumption of sustainable development" is included.

Keywords

• production and non-production function
• model of agriculture
• production process
• agricultural production