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The comb ination of factors of production in the commercial farms at the optirnm level is necessry in order to have maximum profits from their agricultura. activities . As compared to previous years, the amount of capital used in agriiculture has increased signi ficantly in the recent years for various rasons. First, the value of money has decreased very significantly in the recent years second the , needto have gedowns , silos, farm machinery like tractors and combineha rvestors etc. , has attracted a lot of investment, Third, the demand for land is very high ( because of increasing incomes , population and need for housing ) while its supply is fixd . in order to have maximum profits from the optimum combination of the factors of production , we must know the marginal productivity of variable faot:s , their costs and the level of output they can produce. Therefore, to have maximum output at the optimum level , we can use the following formul ,

This means that the marginal value productivity of all variable factors that are used for production of a coriinodity should be equal to their costs , respectively We should increase the use of a factor of production which has greater marginal value productivity than the cost . In case the marginal value productivity of a factor is less than the cost , we should not use that factor.
For two or more commodities to be produced or any combination of them ,we
must see that the isocost curves should be tangent to the iso-production line.
At this point of tangency, we reach the optimum level with help of following -
formula :
The above formula explains that the marginal value productivity of different factors of production in comparison to their prices should have the same ratios for different commodities produced at the farm . When this ratio is same for different commodities , their is optimum use of factors of production
This formula can not be used in case of small farms ( as in case of villages of Iran where average holding is one or two hectares ). However , this method could be used for big farm corporations of farm cooperatives . I analysed a few farm corpora tives of Iran and observed that they used cost-benefit analysis and not the above mentioned method . If they used the method of potimum combination of factors of production , they can reach the maximum profit situation