This revised, updated second edition discusses the application of economic theory to real situations in agriculture, bridging the gap between abstract theory and its application. Designed for advanced undergraduates majoring in agricultural economics. Includes numerical examples, problems and exercises.nPart 1. Introduction nPart 2. Production and Cost Functions nPart 3. Allocation of One Fariable Inputns/d Part 10. Farm Adjustment In A Changing Economy