Farm and Ranch Management - Test 1
questions n answers
Improved Management skills - correct answer ✔✔How do producers cope with changing
industry structure, innovative business strategies, and 21st century challenges?
Management - correct answer ✔✔__________ is concerned about the allocation of scarce
resources
1. Planning
2. Implementation
3. Control
4. Adjustment - correct answer ✔✔What are the 4 functions of management?
Economic Principles - correct answer ✔✔__________ consist of a set of rules which ensure that
the decision made will result in maximum profit.
1. Acquire physical and biological data and process it into useful information
2. Acquire price data and process it into useful information
3. Apply appropriate economic decision-making rule to maximize profit - correct answer
✔✔What are the steps in the application of rules for economic principles? (3)
Marginal - correct answer ✔✔Refers to the change or the added or extra
Yield - correct answer ✔✔Total Physical Product (TPP) = ________
, TPP/input level - correct answer ✔✔Average Physical Product (APP) =
delta (TPP) / delta (Input level) - correct answer ✔✔Marginal Physical Product (MPP) =
Law of diminishing marginal returns - correct answer ✔✔Law that states as additional units of a
variable input are used in combination with one or more fixed inputs, MPP will eventually begin
to decline
TPP x Output Price - correct answer ✔✔Total Value Product (TVP) =
delta (TVP) / delta (input level) - correct answer ✔✔Marginal Value Product (MVP) =
Input Level x Input Price - correct answer ✔✔Total Input Cost (TIC) =
delta (TIC) / delta (input level) - correct answer ✔✔Marginal Input Cost (MIC) =
MVP = MIC - correct answer ✔✔What is the input decision rule?
TPP x Output Price - correct answer ✔✔Total Revenue (TR) =
delta (TR) / delta (TPP) - correct answer ✔✔Marginal Revenue (MR) =
Input Level x Input Price - correct answer ✔✔Total Cost (TC) =
delta (TC) / delta (TPP) - correct answer ✔✔Marginal Cost (MC) =
questions n answers
Improved Management skills - correct answer ✔✔How do producers cope with changing
industry structure, innovative business strategies, and 21st century challenges?
Management - correct answer ✔✔__________ is concerned about the allocation of scarce
resources
1. Planning
2. Implementation
3. Control
4. Adjustment - correct answer ✔✔What are the 4 functions of management?
Economic Principles - correct answer ✔✔__________ consist of a set of rules which ensure that
the decision made will result in maximum profit.
1. Acquire physical and biological data and process it into useful information
2. Acquire price data and process it into useful information
3. Apply appropriate economic decision-making rule to maximize profit - correct answer
✔✔What are the steps in the application of rules for economic principles? (3)
Marginal - correct answer ✔✔Refers to the change or the added or extra
Yield - correct answer ✔✔Total Physical Product (TPP) = ________
, TPP/input level - correct answer ✔✔Average Physical Product (APP) =
delta (TPP) / delta (Input level) - correct answer ✔✔Marginal Physical Product (MPP) =
Law of diminishing marginal returns - correct answer ✔✔Law that states as additional units of a
variable input are used in combination with one or more fixed inputs, MPP will eventually begin
to decline
TPP x Output Price - correct answer ✔✔Total Value Product (TVP) =
delta (TVP) / delta (input level) - correct answer ✔✔Marginal Value Product (MVP) =
Input Level x Input Price - correct answer ✔✔Total Input Cost (TIC) =
delta (TIC) / delta (input level) - correct answer ✔✔Marginal Input Cost (MIC) =
MVP = MIC - correct answer ✔✔What is the input decision rule?
TPP x Output Price - correct answer ✔✔Total Revenue (TR) =
delta (TR) / delta (TPP) - correct answer ✔✔Marginal Revenue (MR) =
Input Level x Input Price - correct answer ✔✔Total Cost (TC) =
delta (TC) / delta (TPP) - correct answer ✔✔Marginal Cost (MC) =
