Answer the following questions and submit to Chapters 11& 12 Questions.
1. Explain why production does not increase in a straight line as more inputs are applied. Give an example of a situation that supports your argument.
2. Define and explain the relationship between economic efficiency and technical efficiency. How do managers use both of them to achieve their objective of maximizing long-run profits?
3. Explain the principle of diminishing marginal product and how it leads to maximizing long-run profits.
4. Define the differences between average product and marginal product and explain how to use them in production decision making.
5. Describe the profit-maximizing area on the production schedule. Explain why the curve of the production line (TP) begins and ends where it does in the profit-maximizing area.
6. How do you locate the point of economic efficiency?
7. What is incremental analysis, and how does it help managers achieve economic efficiency?
8. What is the principle of equimarginal allocation, and how does it help a manager decide where to apply the next unit of input? Develop an example that illustrates the application of this principle.
9. Explain why average product is often called yield. How does average product measure the efficiency of the resources used to create output?
10. Explain how marginal product measures the contribution of input used to create output.
Answer the following questions and submit to Chapter 12 Questions.
1. Explain why it is important for an agribusiness manager to understand production and inventory management. Give two examples that support your explanation.
2. Why does a firm have both an accounting system and a management information system? Which is the most important to a manager? Explain.
3. What is opportunity cost? Why is it important to business decision making? Develop an example that illustrates your explanation.
4. Explain how agribusiness managers use avoidable and sunk costs in their decision making.
5. What is the difference between implicit and explicit costs? Describe how they are measured. What is their role in decision making?
6. Define the term contribution as used in this chapter. Give an example of how it is used to price a new product.
7. What are the three components of break-even analysis?
8. What does the term reorder point mean? How does a manager use it to improve inventory management?
9. Explain how a manager would use break-even analysis to set the price of a new product.
10. Describe how contribution is allocated between overhead and profit before the break-even point and after the break-even point. Develop a simple example to show how it works.
Answer the following questions and submit to Chapters 13 Questions.
1. Why is it important to understand financial management in order to be an effective manager? Why does this process being with the balance sheet and P&L statement?
2. What does the balance sheet tell a manger about her business? List three things the balance sheet does not tell a manager about her business.
3. What does the P&L statement tell a manager about his business? List three things the P&L statement does not tell a manager about his business.
4. What is a fiscal year? Explain why it may not coincide with a calendar year.
5. What is the accounting equation? How is it used to develop a balance sheet?
6. Explain when a business is solvent and insolvent. Develop an example where an agribusiness may be solvent at one point in the year and insolvent in another.
7. What is the difference between current assets and fixed assets?
8. What is the difference between a current and a long-term liability?
9. What is owner’s equity? How is it different from net worth?
10. Why are fixed assets depreciated and current assets are not?