Farm and Ranch management
In what order would you locate the first three bags of fertilizer?
1st bag: Corn, 2nd bag: Corn, 3rd bag: Cotton because corn has the two highest weights
Approximately how many farms are the in the United States?
2,100,000
Once you have allocated all 15 bags , how many bags have been applied to each crop?
Corn: 5 bags, Wheat: 4 bags, Cotton: 6 bags Why? because corn wheat and cotton all have large numbers but you only take the top 15 numbers.
Marginal cost is the additional cost paid by a producer attributed to the use of one or more additional unit of input. Marginal cost is calculated as the change in total cost divided by the change in input.
False
Marginal revenue is the additional revenue received by a producer attributed to the sale of one or more additional unit of input. Marginal revenue is calculated as the change in total revenue divided by the change in total physical product.
False
Marginal value product and marginal input cost should always be used together when evaluating profit maximizing input levels because they are both computed per unit of output.
False
The economic decision rule for finding the profit maximizing amount of INPUT to USE is to find the point where marginal revenue is equal to marginal cost. Alternatively, if a point where the two are equal cannot be reached, the profit maximizing point is where marginal revenue is as close as possible to to marginal cost, with marginal COST exceeding marginal revenue.
False; would be true if it was (input to produce with marginal cost exceeding marginal revenue
The economic decision rule for finding the profit maximizing amount of OUTPUT to PRODUCE is to find the point where marginal revenue is equal to marginal cost. Alternatively, if a point where the two are equal cannot be reached, the profit maximizing point is where marginal revenue is as close as possible to to marginal cost, with marginal REVENUE exceeding marginal COST.
False; would be true if it was (output to use) with marginal revenue exceeding marginal cost.
A limited input should be allocated among alternative uses in such a way that the marginal value products of the last unit used on each alternative are equal.
True
When a limited amount of an input is available it may not be possible to reach the profit maximizing point where marginal revenue is equal to marginal cost. In this situation, a manager must determine the appropriate allocation of the limited input among multiple alternatives.
True
Maximizing profit from a total farm business requires the proper allocation of limited inputs among competing enterprises. This will not necessarily result in maximizing profit from any single enterprise.
Ture
Which of the following is more likely to be a fixed cost in a typical crop enterprise?
depreciation expense
In the short-run, production should be stopped whenever:
expected selling price is less than average variable cost.
Complementary enterprises are those in which
the output of both enterprises can be increased at the same time.
Competitive enterprises are those in which:
the output of one can be increased only by reducing output of another.
The opportunity cost of one more unit of variable input is:
the return from using that input in its next best alternative.