This paper considers whether or not the returns on the resource use for a sample of farms located in two distint parts of central Gujarat, given their respective production functions, are maximized and if not, why not. Two different methodologies for studying this question are based on linear programming and production functions. We have selected the latter. The second objective is therefore to analyse the economic and statistical implications of selction of (a) functiomal forms, and (b) variables for estimating production functions for a cross-section of farms.