A firm is often characterized as an entity that transforms unique factors of production to final production in order to maximize its market value and eventually the profit. Given the technological limitation, a firm allocates its financial resources in the most effective way for the purpose of the lowest costs of bought inputs possible within the maximum goods. The situation in the agriculture is the same. Therefore, the aim of this article is to analyse by the means of simplified microeconomic model the development and the structure of factors of production, namely labour and capital, and their influence on final production of a farm in selected agricultural holdings in the Czech Republic.
Tangible fixed assets are one of the most important factors that influence the functioning of the whole company. Basically, it is an asset supposed to bring in monetary income and increase owners possessions in the future. The allocation of financial resources into fixed asset (TFA), its level and structure will therefore influence revenues of a company in future years. For that reason, it is necessary to search for optimal level of the TFA that would ensure smooth production and would not decrease the return on corporate assets by bounding capital in this item of assets. Optimizing the state and structure of fixed asset should be one of the strategic objectives of a company.
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