Profits from groundnut farm in India are not appreciable on account of the high cost of production. In the present study an attempt has been made to reduce the cost of production through reorganisation of resources by (i) input-output relationship of resources; (ii) yield iso-quants for different levels of output, (iii) the marginal rate of substitution of resources and (iv) least-cost combination of resources through iso-clines for different price ratios.
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