Animal Health economics Flashcards
Equation for productivity
= total value of outputs per unit time/ total value of inputs per unit time
Common methods of assessing livestock productivity
Production per animal and production per hectare (allows arable comparison)
What is a production function?
To Idenitfy an optimum level of production there is a need to have a technical relationship between and input and output. This technical relationship is very important in terms of defining a rational level of production.
What does livestock production include?
Feed, forage, animal health care
What are the 3 stages of production?
- stage 1: increasing output versus inputs
- stage 2: sharp increase of output with increase of input, this is region of rational production
- stage 3: decline in output with furred increases in input
What is required for economic optimum?
The technical relationship between input and output needs to be modified to include the prices of the inputs and outputs.
Define input value
Total input multiplied by input price
Define output value
Total outputs multiplied by output price
Define profit
Vertical distance between total revenue and total costs.
When is profit maximised?
When the slope of the total revenue line is equal to the slope of the total cost line. This is equal to the point where there is the greatest distance between the two lines.
Define technical optimum
The maximum amount of production
Define economic optimum
The maximum profit
T:F the lower the unit prove of an input relative to an output the closer the technical and economic optimums are
True
What is the John Nix farm management handbook?
Published every year, contains up to date information on most important outputs and variable. There is also the Agro Bsuiness Consultants which is similar to Nix but contains range of gross margins with different prices and outputs.
What will a good awareness of cost structure influence?
Reduce risks to clients income
Improve clients income
Improve wellbeing of client and welfare.
