Diversification in Resource Allocation and Minimization of Income Variability

Abstract

IVERSIFICATION is one of the precautions which resource adjD ministrators or managers can use in adjusting to an uncertainty situation. The logic inherent in this production procedure has application in any situation where choice must be made in respect to a future characterized by imperfect knowledge. It applies not only to individual farm management but also to administration of an agricultural economics department, an army, or other economic units which employ resources and must make decisions about the future.