Price Relationships of the Production Factors as Exogenous Determinants of Production in Agriculture

In this article, attention is focused on the prices of production factors (capital, labour and land) and their relationships. We indicate here their exogenous character based on the author's analytical approach. In addition, we derive the dependencies, while drawing from the theory of microeconomics and the producer choice theory. Empirical verification for the selected EU countries covered the pairs of levels of these prices in the agricultural sector. Finally, these relationships determine the production techniques and their changes, that is, the relationships of the involved production factors necessary to obtain a certain production level