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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
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PRODUCER'S EQUILIBRIUM

PRODUCER'S EQUILIBRIUM
Meaning: Every firm aims at maximization of profits which can be possible only when the firms cost are minimum.Thus, the producers of firms aims at utilising the combination of factors of production at which it's cost are the least. Such combination is called as 'least cost combination'. It is that combination in which output is maximize at given cost. 
When the firm is producing desired output with the factor combination having the least cost ,it is said to be in equilibrium. It is stage where producer has no tendency either to expand or contract his output .

Producer's equilibrium can be explained in two ways :-
a) Marginal productivity analysis by neo -Classical economists.
b)Iso -producer analysis by modern economists.

Marginal product analysis
Ist case - Two factor case
Here, the firm uses two combination 

                   MPPl.          MPPk
                 _________. = _________
                       Pl.                 Pk

It explains that the last rupee spent on each of factor must be equal to each other .
In case ,if they are not equal ,suppose

                     MPPl.          MPPk
                  _________. >___________
                         Pl.                 Pk

More labour is used relative to capital ,since firm is getting greater physical return for its money from extra workers than from extra capital. However, the diminishing returns of labour will set in .Thus, MPPl will consequently fall. This will continue until they both will get to the equilibrium point.
This choice of technique is said to be most efficient and further changes cannot be made.It is the least cost way of combining the factors for any given output .
Efficiency in this sense of using the optimum factor proportion is known is productive efficiency.

2nd case - Multi-factor case
A firm will use many different factors ,the least - cost combination of factors will be when , 
    MPPa     MPPb.     MPPc.      MPPd
 _________=__________=__________=___________
     Pa.             Pb.             Pc.              Pd

If any inequality exists between the ratios,the form will be able to reduce costs by using more of factors which have high ratio until to the point they will become equal .

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