Download e-book for kindle: An Introduction to Farm Organisation & Management by M. Buckett (Auth.)

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By M. Buckett (Auth.)

ISBN-10: 0080342027

ISBN-13: 9780080342023

ISBN-10: 0080983898

ISBN-13: 9780080983899

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Extra resources for An Introduction to Farm Organisation & Management

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E q u a l care w o u l d h a v e to b e t a k e n in a case w h e r e w i n t e r stock fodder was limited. It m i g h t b e necessary to s p r e a d t h e fodder o v e r all stock t o keep t h e m alive r a t h e r t h a n finish a few for slaughter. Figure 9 shows t h e classical p r e s e n t a t i o n of t h e r e l a t i o n s h i p b e t w e e n t h e total p r o d u c t , t h e average p r o d u c t , a n d t h e m a r g i n a l p r o d u c t . It can b e seen from this t h a t t h e average p r o d u c t is at its m a x i m u m w h e n its curve is cut b y t h e m a r g i n a l p r o d u c t curve.

In o t h e r c o u n t r i e s c h e a p or interest-free loans are p r o v i d e d t o s o m e farmers. Environmental Factors and Forecasting 27 2 . 5 . TECHNOLOGICAL A N D BIOLOGICAL FACTORS 2 . 5 . 1 . Technological Improvements T h e significant d e v e l o p m e n t in agricultural technology d u r i n g t h e last 30 t o 4 0 years h a s fostered a n e n o r m o u s increase in t h e o u t p u t from farming. T h e r e is still plenty of p o t e n t i a l for further i m p r o v e m e n t , b u t t h e food surpluses w i t h i n t h e E E C (which can b e a t t r i b u t e d t o a c o m b i n a t i o n of i m p r o v e d technology a n d a t t r a c t i v e prices) a n d m u c h of t h e rest of w e s t e r n w o r l d h a v e p u t i n t o q u e s t i o n t h e cost/benefit of further increases in p r o d u c t i o n .

T h e o p t i m u m p o i n t can b e o b t a i n e d graphically. M a x i m u m profit occurs w h e r e t h e difference b e t w e e n total r e v e n u e a n d total cost is greatest. I n Fig. 10a t h e t o t a l r e v e n u e a n d t o t a l cost curves h a v e b e e n d r a w n o n t h e s a m e graph. A vertical line d r a w n at t h e p o i n t of m a x i m u m d i s t a n c e b e t w e e n t h e t w o lines i n d i c a t e s t h e i n p u t w h i c h will p r o d u c e m a x i m u m profit.

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An Introduction to Farm Organisation & Management by M. Buckett (Auth.)


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