Economic analysis of production system
To perform the economic calculations in an agrarian system, we will measure the annual monetary value of the output (sales, household consumption, gift, in kind payment related to labor cost paid etc.). In this article, we will quantify the wealth created by one farm (we use the term of family labour to include all family members who contribute farm activity) called Value-added and Gross Remuneration of family labour. The economic formulars are detailed as below.
