THE ENDOGENOUS AND EXOGENOUS CONDITIONS FOR AGRICULTURAL PRODUCERS INCOME INCREASE

A comprehensive analysis of the creation process of farm income increase has been conducted in order to distinguish and to present the impact of the endogenous and exogenous conditions on this increase as well as to prove that the endogenous conditions are the most important here. The fundamental assumptions have been made on competitive equilibrium and equalization of production costs and prices of products which were produced with the use of production factors being carriers of those costs. This results in another proved assumptions, important for the subject of this consideration, that production factors engaged in the process of goods production, are paid accordingly to prices of these goods (exogenous conditions) but first of all to the achieved productivity of the factors (endogenous conditions).