This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'. This lesson covers the basic governing principles of economic thinking including the key economic questions, factors of production, efficiency and the market structure.
This document provides definitions and explanations of key concepts in agricultural economics and related fields. It defines agricultural economics as the application of economic principles to agricultural production and distribution. It also defines and discusses the importance of concepts like agricultural production economics, farm management, agricultural finance, agricultural marketing, goods and services, utility, and different types of utility. The document aims to establish the foundational concepts and scope of agricultural economics as a field of study.
The document discusses key concepts in business economics and management. It defines management as working together towards a common goal, coordination, an ongoing process, and getting work done through others. It outlines the scope of business economics as applying economic theory and tools to solve business problems and aid decision-making. This includes demand analysis, production decisions, cost analysis, and investment management. The document also discusses important economic principles like marginal analysis, risk and reward, and how returns vary based on the riskiness of different assets.
Microeconomics studies individual economic units like consumers, producers, and markets for specific goods. It analyzes prices, wages, and particular industries. While useful for understanding free markets and welfare optimization, microeconomics provides a limited view of the entire economy and ignores collective functions. Macroeconomics, on the other hand, examines the whole economic system and how aggregate variables like output, unemployment, and inflation interact. It is important for developing economic policies, understanding national development, and addressing large-scale problems, but it is difficult to collect precise macroeconomic data and some sectors may be unaffected.
Agricultural Marketing and Economic DevelopmentFazlul Hoque
ย
This document discusses the importance and history of agricultural marketing. It outlines key benefits including increased farm income, market widening, and employment creation. It also examines factors that influence marketable surplus such as farm size, production levels, and consumption habits. Finally, it provides characteristics of ideal marketing systems, including pricing efficiency based on transportation and storage costs.
This document discusses managerial decision making. It begins by defining decision as a choice between alternatives and decision making as the process of identifying problems and opportunities to resolve them. It then discusses various characteristics, types, and importance of decision making. The document outlines different decision making models including classical, administrative, and political models. It also discusses decision analysis tools like influence diagrams and decision trees. Finally, it discusses different decision styles like directive, analytical, conceptual, and behavioral. Overall, the document provides an overview of key concepts and approaches related to managerial decision making.
Chapter 1 foundations of engineering economyBich Lien Pham
ย
This document contains lecture slides about the foundations of engineering economy. It discusses key concepts like time value of money, cash flows, economic equivalence, interest rates, minimum attractive rate of return, and opportunity cost. The slides provide examples and definitions to explain these important economic principles that engineers must understand to make sound financial decisions when evaluating project alternatives.
The document discusses several key economic principles:
1) Economics seeks to analyze production, distribution, and consumption of goods and services given the scarcity of resources. Microeconomics examines individual units while macroeconomics examines aggregates.
2) The production possibilities curve illustrates scarcity and opportunity costs graphically, showing the tradeoffs between two goods an economy can produce.
3) Absolute advantage refers to being able to produce more of a good using the same inputs. Comparative advantage means having a lower opportunity cost of production. Countries can gain from trade based on comparative advantage.
The document discusses the importance of engineering economy in decision making for individuals, businesses, and government agencies. Engineering economy provides quantitative analysis techniques to evaluate and compare the costs and benefits of project alternatives over time. It helps structure the estimates needed to evaluate alternatives and select the most economically favorable option based on metrics like present worth, rate of return, and benefit-cost ratio.
This document provides definitions and explanations of key concepts in agricultural economics and related fields. It defines agricultural economics as the application of economic principles to agricultural production and distribution. It also defines and discusses the importance of concepts like agricultural production economics, farm management, agricultural finance, agricultural marketing, goods and services, utility, and different types of utility. The document aims to establish the foundational concepts and scope of agricultural economics as a field of study.
The document discusses key concepts in business economics and management. It defines management as working together towards a common goal, coordination, an ongoing process, and getting work done through others. It outlines the scope of business economics as applying economic theory and tools to solve business problems and aid decision-making. This includes demand analysis, production decisions, cost analysis, and investment management. The document also discusses important economic principles like marginal analysis, risk and reward, and how returns vary based on the riskiness of different assets.
Microeconomics studies individual economic units like consumers, producers, and markets for specific goods. It analyzes prices, wages, and particular industries. While useful for understanding free markets and welfare optimization, microeconomics provides a limited view of the entire economy and ignores collective functions. Macroeconomics, on the other hand, examines the whole economic system and how aggregate variables like output, unemployment, and inflation interact. It is important for developing economic policies, understanding national development, and addressing large-scale problems, but it is difficult to collect precise macroeconomic data and some sectors may be unaffected.
Agricultural Marketing and Economic DevelopmentFazlul Hoque
ย
This document discusses the importance and history of agricultural marketing. It outlines key benefits including increased farm income, market widening, and employment creation. It also examines factors that influence marketable surplus such as farm size, production levels, and consumption habits. Finally, it provides characteristics of ideal marketing systems, including pricing efficiency based on transportation and storage costs.
This document discusses managerial decision making. It begins by defining decision as a choice between alternatives and decision making as the process of identifying problems and opportunities to resolve them. It then discusses various characteristics, types, and importance of decision making. The document outlines different decision making models including classical, administrative, and political models. It also discusses decision analysis tools like influence diagrams and decision trees. Finally, it discusses different decision styles like directive, analytical, conceptual, and behavioral. Overall, the document provides an overview of key concepts and approaches related to managerial decision making.
Chapter 1 foundations of engineering economyBich Lien Pham
ย
This document contains lecture slides about the foundations of engineering economy. It discusses key concepts like time value of money, cash flows, economic equivalence, interest rates, minimum attractive rate of return, and opportunity cost. The slides provide examples and definitions to explain these important economic principles that engineers must understand to make sound financial decisions when evaluating project alternatives.
The document discusses several key economic principles:
1) Economics seeks to analyze production, distribution, and consumption of goods and services given the scarcity of resources. Microeconomics examines individual units while macroeconomics examines aggregates.
2) The production possibilities curve illustrates scarcity and opportunity costs graphically, showing the tradeoffs between two goods an economy can produce.
3) Absolute advantage refers to being able to produce more of a good using the same inputs. Comparative advantage means having a lower opportunity cost of production. Countries can gain from trade based on comparative advantage.
The document discusses the importance of engineering economy in decision making for individuals, businesses, and government agencies. Engineering economy provides quantitative analysis techniques to evaluate and compare the costs and benefits of project alternatives over time. It helps structure the estimates needed to evaluate alternatives and select the most economically favorable option based on metrics like present worth, rate of return, and benefit-cost ratio.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...PiLNAfrica
ย
This document provides an overview of a lesson on decision making and the differences between explicit and implicit costs for farmers. The lesson defines economic costs as including both direct and indirect costs, while accounting costs only include direct costs. It discusses how economic profit is calculated by subtracting total costs (explicit and implicit) from total revenue, while accounting profit only subtracts explicit costs. The lesson includes examples to illustrate these concepts and how farmers can use cost analysis to make decisions that maximize their economic profits.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...Saide OER Africa
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'. This lesson focuses on building skills and economic rationales for decision making under given farming scenarios that may have multiple options. We will spend some time looking specifically at Economic versus Accounting Costs & Relevant Cost Analysis.
This document provides an overview of a Managerial Economics course syllabus. It includes 5 units that will be covered: general foundations of managerial economics, laws of production and costs, product markets under different structures, national income concepts and business cycles, and the macroeconomic environment. The objectives are to introduce economic concepts, familiarize students with using economics in managerial decision making, and understand applications of theories to business decisions. Key topics covered include demand analysis, production functions, costs, market structures, pricing, national income, technology, business cycles, and fiscal/monetary policies.
This document provides an overview of a Managerial Economics course syllabus. It includes 5 units that will be covered: general foundations of managerial economics, law of variable proportions and cost functions, product markets under different structures, national income concepts and business cycles, and macroeconomic environment. The objectives are to introduce economic concepts, familiarize students with using economics in managerial decision making, and understand applications of theories to business decisions. Key topics covered include demand analysis, elasticity, costs, market structures, fiscal and monetary policies, and India's economic transition. The syllabus aims to equip students with tools and insights for furthering organizational goals through economic analysis and decision making.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...PiLNAfrica
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'.This sub-module defines the concept of economics, provides an overview of the concept of a firm and explores the centrality of profit in its models.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...Saide OER Africa
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'.This sub-module defines the concept of economics, provides an overview of the concept of a firm and explores the centrality of profit in its models.
Farm management production and resource econmics (1).pdf19BAG7124SAHIL
ย
This document provides information about an agricultural economics course on production economics and farm management. The 2-credit course is taught in the Department of Agricultural Economics at CSK Himachal Pradesh Agricultural University in Palampur, India. The course covers topics such as production functions, costs concepts, farm planning and budgeting, and linear programming. Students will be evaluated through mid-term and end-term practical and theory exams worth a total of 100 marks. References for the course include textbooks on farm business management, agricultural production economics, and production economics.
This document outlines the objectives and units of an MBA course on Managerial Economics. It covers key economic concepts applied to managerial decision making like demand analysis, costs, market structures, and macroeconomic factors. The 5 units include general foundations, production and costs, market determination under different structures, national income concepts, and the macroeconomic environment. Managerial economics integrates micro and macroeconomic theories to help managers make optimal decisions by analyzing business problems and tradeoffs in an environment of scarce resources.
This document outlines the objectives and content of a course on managerial economics. It introduces economic concepts and their importance for managerial decision making. The 5 units of the course cover general foundations, costs and production, market structures, national income and macroeconomics, and the macroeconomic environment. Unit 1 discusses the economic approach, circular flow of activity, objectives of firms, demand analysis, and demand forecasting. It defines managerial economics as the application of micro and macroeconomic principles to optimize business decision making under uncertainty.
Agriculture Marketing (Mkt165) chapter 1-introductionwatak manga pilu
ย
The document provides an overview of agricultural marketing concepts. It discusses key topics such as the definition of agricultural marketing, farm marketing, the agricultural marketing circle, agribusiness marketing, marketing utilities, marketing concepts, the importance of marketing, the food and fiber system, the development and role of agricultural marketing, and the structure of agricultural products and production. The main purpose is to introduce foundational concepts in agricultural marketing.
This document provides an overview of managerial economics concepts. It begins with definitions of economics and managerial economics. It discusses the basic assumptions in economics of ceteris paribus and rationality. It also outlines the different types of economic analysis including micro vs macro, positive vs normative, and short run vs long run. The rest of the document discusses the decision making process in managerial economics, including the use of quantitative tools and statistical techniques. It also outlines the role of economics and the managerial economist in business decision making. It discusses growing challenges like globalization and technology that managerial economists face. Finally, it provides a short quiz with lessons about unexpected competitors.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept โ
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
This document provides an overview of basic economic concepts including microeconomics, macroeconomics, the basic economic tasks of production and distribution, central direction vs market mechanisms, households as consuming units, firms as producing units, and the role of profit. It defines key terms and outlines the differences between microeconomics which focuses on individual units, and macroeconomics which looks at aggregate economic behavior and variables at a national level. The basic economic tasks that an economy must accomplish are production, distribution, and determining how resources are allocated.
This document provides an overview of engineering economics and key economic concepts. It discusses:
1. The unit introduces engineering economics and covers topics like demand analysis, elasticity, and forecasting techniques.
2. It defines economics and explains that economics studies how individuals and nations earn and spend money.
3. The key steps in engineering economic studies are outlined as the creative, definition, conversion, and decision steps.
This document provides an overview of engineering economics and managerial economics. It defines economics as the study of human activity and wealth at both the individual and national levels. It then discusses key concepts in engineering economics like the four steps of planning an economic study. Microeconomics is defined as the study of individual consumers and firms, while macroeconomics is the study of aggregate economic activity at the national level. Finally, it outlines the scope of managerial economics, including demand analysis, pricing strategies, production and cost analysis, and resource allocation.
1. What products and styles should I offer to meet customer demand and maximize profits?
2. How should I price my products to be competitive yet profitable?
3. What costs will I incur to operate the business and how can I control costs to ensure profitability?
Managerial Economics: myths and realities 1.pptxssalially
ย
This document provides an overview of a Managerial Economics course. It outlines the course objectives, topics to be covered, teaching methods, assessment criteria, and recommended reading materials. The key topics include an introduction to economic concepts, production possibilities, market analysis, elasticity, production and cost theories, and market structures. The overall aim is to equip students with economic tools and techniques to analyze business decisions and strategies.
Agricultural production economics examines how to maximize output from limited resources on farms. It considers two key production decisions - how to organize resources to maximize a single commodity, and what combination of commodities to produce. The goals are to provide guidance to farmers on efficient resource use and facilitate efficient resource use economy-wide. Farmers face basic problems in deciding what and how to produce, how much to produce, when to buy and sell, and where to buy and sell. Agricultural production economics aims to determine optimal resource use and analyze factors influencing existing resource use patterns. It examines relationships and principles for rational resource allocation and management decisions.
This document provides an introduction to microeconomics. It defines microeconomics as the study of economic decisions made by individuals and businesses, as well as the interactions between buyers and sellers in the market. The document outlines several key microeconomic concepts, including supply and demand, opportunity costs, and different economic systems. It also provides learning objectives and topics to be covered in the chapter, such as defining economics, distinguishing microeconomics from macroeconomics, basic economic concepts, and different types of economic systems including capitalistic, socialistic, and mixed market economies.
validity. (The Case lulTTtuT 2. Discuss the Economics of Effective Ma.pdfFORTUNE2505
ย
validity. (The Case lulTTtuT 2. Discuss the Economics of Effective Management. List and
discuss the first 4 items. L4- page
Solution
Effective management leads to use scare resources in a way so that the maximum economic
benefit could be achieved by the whole organization. It indicates the minimum waste and the
maximum returns.
Required items:
1) Setting goal: Effective management sets goal of the organization considering all probable
constraints.
2) Profit reorganization: The role of profit creates motivation; management creates possibilities
(like new expansions, lowering costs, etc) so that profit could be increased in a substantial
amount.
3) Incentives: Understanding of such is very important. Management wants to create more
market for more incentives.
4) Markets: Understanding the true market (like middle-class customers, lower middle-class
customers, etc) for which products to be sold is an important act of effective management.
Creating opportunities in the market is the key to success..
Gastric lavage, also known as stomach pumping, is a medical procedure used to empty the contents of the stomach. It involves flushing a liquid, such as water or salt water, in and out of the stomach through a tube to induce vomiting. Gastric lavage is primarily used to treat poisoning from a substance that was ingested.
This document provides specifications for a game-based assessment template created for training activities. The template can be adapted by identifying content to create questions and answers for each block on the gameboard. Users can then paste their own questions and answers into the template to create a game to review material either competitively or independently. The template was created to provide a simple game for assessing any health informatics content.
More Related Content
Similar to Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for Farmer Organisations. Lesson 2: Basic Principles of Economics
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...PiLNAfrica
ย
This document provides an overview of a lesson on decision making and the differences between explicit and implicit costs for farmers. The lesson defines economic costs as including both direct and indirect costs, while accounting costs only include direct costs. It discusses how economic profit is calculated by subtracting total costs (explicit and implicit) from total revenue, while accounting profit only subtracts explicit costs. The lesson includes examples to illustrate these concepts and how farmers can use cost analysis to make decisions that maximize their economic profits.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...Saide OER Africa
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'. This lesson focuses on building skills and economic rationales for decision making under given farming scenarios that may have multiple options. We will spend some time looking specifically at Economic versus Accounting Costs & Relevant Cost Analysis.
This document provides an overview of a Managerial Economics course syllabus. It includes 5 units that will be covered: general foundations of managerial economics, laws of production and costs, product markets under different structures, national income concepts and business cycles, and the macroeconomic environment. The objectives are to introduce economic concepts, familiarize students with using economics in managerial decision making, and understand applications of theories to business decisions. Key topics covered include demand analysis, production functions, costs, market structures, pricing, national income, technology, business cycles, and fiscal/monetary policies.
This document provides an overview of a Managerial Economics course syllabus. It includes 5 units that will be covered: general foundations of managerial economics, law of variable proportions and cost functions, product markets under different structures, national income concepts and business cycles, and macroeconomic environment. The objectives are to introduce economic concepts, familiarize students with using economics in managerial decision making, and understand applications of theories to business decisions. Key topics covered include demand analysis, elasticity, costs, market structures, fiscal and monetary policies, and India's economic transition. The syllabus aims to equip students with tools and insights for furthering organizational goals through economic analysis and decision making.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...PiLNAfrica
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'.This sub-module defines the concept of economics, provides an overview of the concept of a firm and explores the centrality of profit in its models.
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for...Saide OER Africa
ย
This Farmers' Agribusiness training course has been developed to help both farmers and farmer organisations. Its intention is to provide access to provide access to additional skills and knowledge that will allow farmers to move from a 'farm' to a 'firm'.This sub-module defines the concept of economics, provides an overview of the concept of a firm and explores the centrality of profit in its models.
Farm management production and resource econmics (1).pdf19BAG7124SAHIL
ย
This document provides information about an agricultural economics course on production economics and farm management. The 2-credit course is taught in the Department of Agricultural Economics at CSK Himachal Pradesh Agricultural University in Palampur, India. The course covers topics such as production functions, costs concepts, farm planning and budgeting, and linear programming. Students will be evaluated through mid-term and end-term practical and theory exams worth a total of 100 marks. References for the course include textbooks on farm business management, agricultural production economics, and production economics.
This document outlines the objectives and units of an MBA course on Managerial Economics. It covers key economic concepts applied to managerial decision making like demand analysis, costs, market structures, and macroeconomic factors. The 5 units include general foundations, production and costs, market determination under different structures, national income concepts, and the macroeconomic environment. Managerial economics integrates micro and macroeconomic theories to help managers make optimal decisions by analyzing business problems and tradeoffs in an environment of scarce resources.
This document outlines the objectives and content of a course on managerial economics. It introduces economic concepts and their importance for managerial decision making. The 5 units of the course cover general foundations, costs and production, market structures, national income and macroeconomics, and the macroeconomic environment. Unit 1 discusses the economic approach, circular flow of activity, objectives of firms, demand analysis, and demand forecasting. It defines managerial economics as the application of micro and macroeconomic principles to optimize business decision making under uncertainty.
Agriculture Marketing (Mkt165) chapter 1-introductionwatak manga pilu
ย
The document provides an overview of agricultural marketing concepts. It discusses key topics such as the definition of agricultural marketing, farm marketing, the agricultural marketing circle, agribusiness marketing, marketing utilities, marketing concepts, the importance of marketing, the food and fiber system, the development and role of agricultural marketing, and the structure of agricultural products and production. The main purpose is to introduce foundational concepts in agricultural marketing.
This document provides an overview of managerial economics concepts. It begins with definitions of economics and managerial economics. It discusses the basic assumptions in economics of ceteris paribus and rationality. It also outlines the different types of economic analysis including micro vs macro, positive vs normative, and short run vs long run. The rest of the document discusses the decision making process in managerial economics, including the use of quantitative tools and statistical techniques. It also outlines the role of economics and the managerial economist in business decision making. It discusses growing challenges like globalization and technology that managerial economists face. Finally, it provides a short quiz with lessons about unexpected competitors.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept โ
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
This document provides an overview of basic economic concepts including microeconomics, macroeconomics, the basic economic tasks of production and distribution, central direction vs market mechanisms, households as consuming units, firms as producing units, and the role of profit. It defines key terms and outlines the differences between microeconomics which focuses on individual units, and macroeconomics which looks at aggregate economic behavior and variables at a national level. The basic economic tasks that an economy must accomplish are production, distribution, and determining how resources are allocated.
This document provides an overview of engineering economics and key economic concepts. It discusses:
1. The unit introduces engineering economics and covers topics like demand analysis, elasticity, and forecasting techniques.
2. It defines economics and explains that economics studies how individuals and nations earn and spend money.
3. The key steps in engineering economic studies are outlined as the creative, definition, conversion, and decision steps.
This document provides an overview of engineering economics and managerial economics. It defines economics as the study of human activity and wealth at both the individual and national levels. It then discusses key concepts in engineering economics like the four steps of planning an economic study. Microeconomics is defined as the study of individual consumers and firms, while macroeconomics is the study of aggregate economic activity at the national level. Finally, it outlines the scope of managerial economics, including demand analysis, pricing strategies, production and cost analysis, and resource allocation.
1. What products and styles should I offer to meet customer demand and maximize profits?
2. How should I price my products to be competitive yet profitable?
3. What costs will I incur to operate the business and how can I control costs to ensure profitability?
Managerial Economics: myths and realities 1.pptxssalially
ย
This document provides an overview of a Managerial Economics course. It outlines the course objectives, topics to be covered, teaching methods, assessment criteria, and recommended reading materials. The key topics include an introduction to economic concepts, production possibilities, market analysis, elasticity, production and cost theories, and market structures. The overall aim is to equip students with economic tools and techniques to analyze business decisions and strategies.
Agricultural production economics examines how to maximize output from limited resources on farms. It considers two key production decisions - how to organize resources to maximize a single commodity, and what combination of commodities to produce. The goals are to provide guidance to farmers on efficient resource use and facilitate efficient resource use economy-wide. Farmers face basic problems in deciding what and how to produce, how much to produce, when to buy and sell, and where to buy and sell. Agricultural production economics aims to determine optimal resource use and analyze factors influencing existing resource use patterns. It examines relationships and principles for rational resource allocation and management decisions.
This document provides an introduction to microeconomics. It defines microeconomics as the study of economic decisions made by individuals and businesses, as well as the interactions between buyers and sellers in the market. The document outlines several key microeconomic concepts, including supply and demand, opportunity costs, and different economic systems. It also provides learning objectives and topics to be covered in the chapter, such as defining economics, distinguishing microeconomics from macroeconomics, basic economic concepts, and different types of economic systems including capitalistic, socialistic, and mixed market economies.
validity. (The Case lulTTtuT 2. Discuss the Economics of Effective Ma.pdfFORTUNE2505
ย
validity. (The Case lulTTtuT 2. Discuss the Economics of Effective Management. List and
discuss the first 4 items. L4- page
Solution
Effective management leads to use scare resources in a way so that the maximum economic
benefit could be achieved by the whole organization. It indicates the minimum waste and the
maximum returns.
Required items:
1) Setting goal: Effective management sets goal of the organization considering all probable
constraints.
2) Profit reorganization: The role of profit creates motivation; management creates possibilities
(like new expansions, lowering costs, etc) so that profit could be increased in a substantial
amount.
3) Incentives: Understanding of such is very important. Management wants to create more
market for more incentives.
4) Markets: Understanding the true market (like middle-class customers, lower middle-class
customers, etc) for which products to be sold is an important act of effective management.
Creating opportunities in the market is the key to success..
Similar to Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for Farmer Organisations. Lesson 2: Basic Principles of Economics (20)
Gastric lavage, also known as stomach pumping, is a medical procedure used to empty the contents of the stomach. It involves flushing a liquid, such as water or salt water, in and out of the stomach through a tube to induce vomiting. Gastric lavage is primarily used to treat poisoning from a substance that was ingested.
This document provides specifications for a game-based assessment template created for training activities. The template can be adapted by identifying content to create questions and answers for each block on the gameboard. Users can then paste their own questions and answers into the template to create a game to review material either competitively or independently. The template was created to provide a simple game for assessing any health informatics content.
This interactive template was created for HIBBs module developers or users of HIBBs in training activities as a tool to create a simple game for any content. Game adaptors can identify the content to be covered, create questions and answers for each gameboard block, and paste them into the game template. The game can be used in a classroom setting with teams of players competing against each other or it can be modified for use by an independent learner as an aid in reviewing material. Instructions for adapting the game: 1) Select the content to be learned from a Health Informatics textbook, class lecture, or other learning resource; 2) Create questions and answers for each block on the gameboard; 3) Have questions and answers reviewed by a content specialist; 4) Replace existing questions and answers by pasting your content into the game template. LINKS TO RELATED HIBBS MODULES: Managing Change in Healthcare IT Implementations: an Introduction; Ethics and Integrity in Data Use and Management; Data Quality: Missing Data. AUXILIARY MATERIALS: HIBBs Game Scoresheet in Microsoft Excel 97-2003
Fostering Cross-institutional Collaboration for Open Educational Resources Pr...PiLNAfrica
ย
Although there are over a quarter of a million open courses published by an increasing number of universities, it remains unclear whether Open Education Resources (OER) is scalable and productively sustainable. The challenge is compounded when OER is examined in the light of its potential to allow both educators and learners in developing countries to contribute geographically bound learning resources in the context of varied infrastructural, technological and skill constraints. Between October and December 2009, 52 participants involved in various roles related to Health OER from five universities (one in the USA, two in Ghana and two in South Africa) were interviewed. The aim of the study was to investigate sustainability of OER based on possible cross-institutional collaboration as well as social and technical challenges in creating and sharing OER materials. The analytical framework was adopted from prior research in related areas: distributed scientific collaboration; cyber infrastructure; open source development; and Wikipedia. We adopted a qualitative approach for data collection, which included semi structured interviews and document analysis. The findings were analyzed and reported with many direct quotations included. The outcome of the data analysis is a model for productive, scalable, and sustainable OER based on cross-institutional collaboration. The report concludes with practical recommendations on how to the model can be operationalized.
Ethics and Integrity in Data Use and Management Detailed SpecificationsPiLNAfrica
ย
This module defines key concepts related to ethics in data use and management. It compares the ethics of using clinical and research data, and reviews guidelines and regulations like HIPAA. It outlines how concepts like data retention, sharing, security, ownership, and analysis are affected by these ethics considerations. The module was created to teach healthcare data managers about identifying pertinent guidelines, describing good practices, and ensuring data integrity. It consists of slides, audio, and video and was used in a 2-week training course in Kenya.
This HIBBS presentation provides background on how to assess the value of a medical informatics solution, explains implementation issues with regard to rolling out any type of electronic medical record system, and mentions points that will help ensure the successful implementation of a medical informatics solution.
Learning Objectives:
Assess the value of a medical informatics solution
Be aware of issues associated with the rolling out of any type of electronic medical record system
Explain what is necessary for a successful implementation of a medical informatics solution
Data Quality: Missing Data detailed specificationPiLNAfrica
ย
This document summarizes a module on managing missing data to maintain data quality. It explains how to plan for missing data by defining different types and documenting reasons for missing values. The module teaches how to minimize missing data and develop procedures to record why data is missing. Its learning objectives are for students to understand why missing data should be reduced and how to code the reasons for missing values.
These resources were taken from the Research Ethics Program Website, University of California at San Diego (http://ethics.ucsd.edu/resources/resources-data.html). All web links have been verified and updated by the HIBBs project, as of 8/2101.
This document discusses ways to prevent childhood tuberculosis, including:
1) BCG immunization to reduce the risk of disseminated TB and TB meningitis in children.
2) Avoiding exposure to untreated TB patients through improved living conditions and screening contacts of active cases.
3) Giving isoniazid prophylaxis to children under 5 who are contacts of active TB cases to prevent infection from progressing to disease.
4) Reporting and recording cases of childhood TB and those receiving prophylaxis to monitor the tuberculosis program's effectiveness.
Childhood TB: Management of childhood tuberculosisPiLNAfrica
ย
Childhood TB was written to enable healthcare workers to learn about the primary care of children with tuberculosis. It covers: introduction to TB infection, the clinical presentation, diagnosis, management and prevention of tuberculosis in children
Childhood TB: Introduction to childhood tuberculosisPiLNAfrica
ย
Childhood TB was written to enable healthcare workers to learn about the primary care of children with tuberculosis. It covers: introduction to TB infection, the clinical presentation, diagnosis, management and prevention of tuberculosis in children
This document provides information about a learning programme called "Childhood TB" that was developed by the Desmond Tutu Tuberculosis Centre to improve the care of children with tuberculosis. It outlines the format, study approach, and content of the programme, which uses self-study, case studies, and questions to teach healthcare professionals about childhood tuberculosis diagnosis, treatment, management, and prevention. The goal is to make quality tuberculosis education more accessible to rural primary healthcare workers.
Childhood TB: Diagnosis of childhood tuberculosisPiLNAfrica
ย
Childhood TB was written to enable healthcare workers to learn about the primary care of children with tuberculosis. It covers: introduction to TB infection, the clinical presentation, diagnosis, management and prevention of tuberculosis in children
Childhood TB: Clinical presentation of childhood tuberculosisPiLNAfrica
ย
Childhood TB was written to enable healthcare workers to learn about the primary care of children with tuberculosis. It covers: introduction to TB infection, the clinical presentation, diagnosis, management and prevention of tuberculosis in children
"Child Healthcare addresses all the common and important clinical problems in children, including:immunisation history and examination growth and nutrition acute and chronic infections parasites skin conditions difficulties in the home and society."
Child Healthcare addresses all the common and important clinical problems in children, including:immunisation history and examination growth and nutrition acute and chronic infections parasites skin conditions difficulties in the home and society.
Child Healthcare: The history and examinationPiLNAfrica
ย
Child Healthcare addresses all the common and important clinical problems in children, including:immunisation history and examination growth and nutrition acute and chronic infections parasites skin conditions difficulties in the home and society.
Child Healthcare addresses all the common and important clinical problems in children, including:immunisation history and examination growth and nutrition acute and chronic infections parasites skin conditions difficulties in the home and society.
Child Healthcare addresses all the common and important clinical problems in children, including:immunisation history and examination growth and nutrition acute and chronic infections parasites skin conditions difficulties in the home and society.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
ย
(๐๐๐ ๐๐๐) (๐๐๐ฌ๐ฌ๐จ๐ง ๐)-๐๐ซ๐๐ฅ๐ข๐ฆ๐ฌ
๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ ๐ญ๐ก๐ ๐๐๐ ๐๐ฎ๐ซ๐ซ๐ข๐๐ฎ๐ฅ๐ฎ๐ฆ ๐ข๐ง ๐ญ๐ก๐ ๐๐ก๐ข๐ฅ๐ข๐ฉ๐ฉ๐ข๐ง๐๐ฌ:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
๐๐ฑ๐ฉ๐ฅ๐๐ข๐ง ๐ญ๐ก๐ ๐๐๐ญ๐ฎ๐ซ๐ ๐๐ง๐ ๐๐๐จ๐ฉ๐ ๐จ๐ ๐๐ง ๐๐ง๐ญ๐ซ๐๐ฉ๐ซ๐๐ง๐๐ฎ๐ซ:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
ย
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
ย
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...TechSoup
ย
Whether you're new to SEO or looking to refine your existing strategies, this webinar will provide you with actionable insights and practical tips to elevate your nonprofit's online presence.
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
ย
Farmer's Agribusiness Training Course: Module 5 - Agribusiness Management for Farmer Organisations. Lesson 2: Basic Principles of Economics
1. 22
MODULE5: Agribusiness Management for Farmer Organisations
LESSON 2: Basic Principles of Economics
TIME: 1 hour 36 minutes
AUTHOR: Prof. Francis Wambalaba
This lesson was made possible with the assistance of the following organisations:
Farmer's Agribusiness Training by United States International University is licensed under a
Creative Commons Attribution 3.0 Unported License.
Based on a work at www.oerafrica.org
2. MODULE 5
2
Agribusiness Management for Farmer
Organisations
BASIC PRINCIPLES OF ECONOMICS
LESSON
AUTHOR:
TIME:
Prof. Francis
1 hour 36 Wambalaba
minutes
INTRODUCTION:
OUTCOMES: :
:
By the end of this segment, the This lesson will cover the basic governing
learner should be able to: principles of economic thinking including the
key economic questions, factors of
Explain the meaning of the production, efficiency and the market
four factors of production from structure.
an economic perspective in
the context of farming
(production inputs).
Identify the type of market
structure that they belong to
and make appropriate
decisions depending on their
type of market structure and
interpret the role of prices as
signals of communication in
their context.
Describe the central questions
that govern economic
thinking.
Discuss the principles
governing efficient allocation of
resources including concepts
of supply and demand,
competitive market, market
equilibrium and competitive
strategies.
Page 229
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
3. Factors of Production
As the term implies, the issues relating to factors of production relate to the production
process side of a farmerโs practices as a firm. There are four traditional factors (land,
labour, capital and entrepreneurs).
Land / Natural Resources
This first factor is defined as land resources and includes all natural resources on the
ground (such as vegetation, animals, insects, soil, water etc.), those underground (such as
minerals, rocks, soil, water, etc.) and those above ground (such as air, clouds, air space
and also climate). Issues that impact on this factor of production can include land size,
distribution, influence of culture on land uses, etc. Competition between farming activities
and urbanization is another contentious issue. Value addition per acre/hectre (or plot size)
increases as the urban areas spread into rural areas because the value for urban uses of
similar land is higher. While competition for land is economic, it can lead to political
competition and therefore conflicts.
Capital Resources
Capital resources are any man-made products that are used in the production of other
products. They include items such as machinery, tools and equipment, infrastructures such
as housing, transport and communication, and other types such as money and human
capital. It should be emphasized that these resources directly affect the ability of the farmer
to be competitive in the market place.
Labour
Labour resources such as human energy and skills used in the production process are the
third factor of production. It should be emphasized that unemployment is not about finding
a job but about a person not using their energy and skills to produce.
Entrepreneurship
Fourthly, entrepreneurship can be defined as human resources with ability to take risks
and invest in ideas (business farming activities especially in value addition). Access to
capital (money) and other inputs in the factor markets, access to consumers in the goods
market and manufacturers in the factor market are issues related to this factor of
production.
Finally, allow for discussion on any other resources issues that come up, such as
Page 230
importance of time, access to information, role of technology, human capital development
etc.
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
4. Activity 1
Group Discussion (15 minutes)
Work in groups of 5, consider and record experiences from the group on how local
issues have impacted on each of the four factors described above. (e.g. Describe your
access to land, urbanization pressures, access to capital, your competitiveness at
markets, access to skilled labour, and of course, your entrepreneurial skills.) Be
prepared to present your findings to the whole class.
Page 231
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
5. Market Structure (10 Minutes)
In general, issues relating to market structure impact on the marketing process side of
the farmerโs practices as a firm.We mentioned these in the previous lesson so here is a
brief revision:
Perfect competition is the extreme situation where products are exact, there are very
many producers/sellers, very many consumers/buyers, and therefore no seller or buyer
can dominate the market. Perfect competition can lead to sellers undercutting each other.
Secondly, perfect monopoly is the extreme opposite to perfect competition where
products are unique; there is only one producer/seller who therefore dominates the market.
If there is only one consumer/buyer, they are called a monopsony. In farming, however,
this rarely exists and farmers find themselves almost always in a competitive environment
rather than in a monopoly.
Thirdly, monopolistic competition is a situation where there are many competitors and it
is closer to perfect competition market. This is realistic of what we typically call
competition in our markets, but for purposes of this course, we will combine it with perfect
competition and simply refer to the environment as competitive market.
Finally, an oligopoly is a situation where there are few competitors and is closer to the
monopoly market. It is the most realistic of what we typically call monopoly in our markets,
but for purposes of this course, we will combine it with perfect monopoly and simply refer
to the environment as monopoly market.
Page 232
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
6. Activity 2
Shifting from competition to Monopoly (10 minutes)
Work in the same group as before.
1. List the advantages and disadvantages of operating in a competitive
market.
2. List the advantages and disadvantages one would face if they belonged in a
monopoly market.
3. Determine which market the group would prefer and provide reasons why.
4. What actions could you take to move closer to a monopoly situation and
gain from economies of scale?
Page 233
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
7. Economics of Scale (5 Minutes)
This concept refers to the cost advantages that a business obtains due to expansion or
collaboration. There are factors that cause a producerโs average cost per unit to fall as
the scale of output is increased. Farmer organizations, for example, can leverage this
type of advantage. Economies of scale include product specific economies, plant specific
economies and firm specific economies.
Product specific economies are related to output of one product which may allow for
greater specialization in use of labour and capital.
Plant specific economies are related to total output of one plant (with multiple
products). For example, an investment in a larger pipeline may cost almost the same but
have more capacity, or an overhead of one supervisor managing many people, or the use
of existing spare parts and personnel on various activities.
Specific economies are related to total output of a firmโs operations from different
regions and can benefit from production and distribution from various plants with
capacity, discounts and fixed costs for marketing and sales promotions spots, or even
technological innovations using in-house resources.
Page 234
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
8. Key Questions of Economic Thinking (10 minutes)
Five fundamental Economic Questions
The five key fundamental economic questions include; What goods and services are
produced and what quantities; How are goods and services produced; When are goods
and services produced; Where are goods and services produced; Who consumes the
goods and services produced.
Activity 3
The 5 Fundamental Questions
Answer these questions but keep in mind the concept of consumer sovereignty -
the buyerโs needs nearly always dictate the answers to these questions.
What to Produce?
What determines whether we build more homes or make more VCRs?
How do these choices change over time?
How are they affected by changes in technology?
How to Produce?
Why do we use machines in some places and people in others?
Does technology destroy jobs?
When to Produce?
How do seasons affect production?
What makes production rise and fall?
Where to Produce?
What determines where goods and services are produced?
How do changing patterns of production location affect types and wages of
jobs we have?
For whom to Produce?
What constitutes demand?
Why do doctors earn more than nurses?
See the Feedback section at the end of this lesson to
Page 235
see a model answer or comments about this activity
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
9. Economic Ways of Thinking
Economic theory can be applied at both the personal level as well as at a regional or
national level. However, the perspective is different according to your involvement.
Contrast these two perspectives:
From a Microeconomic Perspective:
A choice is a tradeoff (opportunity cost)
Choices are made at the margin (additional benefit from an additional cost instead
of total benefits from total cost)
Exchange is voluntary (& markets are an efficient way of exchange)
Markets can and do fail.
From a Macroeconomic Perspective:
For the economy as a whole, Expenditure = Income = Value of Production
Productivity improves standards of living
Inflation occurs when the quantity of money increases faster than production
Unemployment can result from market failure but some unemployment is
productive.
Page 236
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
10. Market Forces of Supply and Demand
The forces of supply and demand help us not only to appreciate the significance of the
customer (demand) but also from a farmersโ perspective, how unwise competition can be
destructive. In this section, we define and discuss demand and supply and the role that
price plays as a signal and communication for action.
What is demand?
Demand exists only when there is willingness and abilityto buy a product (goods or
service) or resource. It is a relationship between the quantity demanded and price of a
product or resource. To have a demand for an item means: you want it; you can afford it;
and you have made a definite plan to buy it.
Determinants of Demand include; Price of the good (x); Price of related/substitute
goods (y) and complementary goods (z); Income (Normal goods or abnormal or given
goods); Population; Tastes & preferences; and Future expectations (on all of the above)
a) Deriving an Individual Demand Curve (Due to changes in price of good x)
Fig. 1: Individual Demand Schedule Fig. 2: Individual Demand Curve
The slope of the demand curve is only influenced by changes in price of the commodity in
question(x). In fig 1 and 2 above, the demand schedule provides changes in quantity
demanded in response to changes in price. From fig. 1, we notice that the lower the
Page 237
price the greater the number of goods purchased. When we plot these combinations we
get the demand curve in fig. 2. This results in a movement along the demand curve
referred to as change in quantity demanded.
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
11. b) Deriving a Market Demand Curve
The market demand curve is a horizontal addition of the individual demand curves as
shown in fig. 3 below. For example, when the price is 6 shillings, consumer one (left)
purchases 30 units while consumer two (middle) purchases 60 units. The total market
(right) demand is 90 units.
Fig. 3: Market Demand
c) Change in Demand โ shifts (due to change in other factors)
As we noted in lesson 1 with respect to the PPC, similarly, an increase in demand shifts
the demand curve to the right while a decrease in demand shifts the demand curve to the
left. Usually, this is simply referred to as change in demand. Shifts usually result from
changes in other factors (other than price of good x). One way of testing this is to ask,
why would anyone buy more (or less) when the price of x is held constant?
A summary of the effects from changes in
price (change in quantity demanded) and
changes from other factors (change in
demand) is presented below.
Quantity demanded decrease โ if
there is an:
โ in price of x
Demand decrease โ if there is a:
โ in price of substitute
โ in price of complement
โ in income
โ tastes & preferences
Page 238
โ in population
โ Time
Expect above change
Fig. 4: Shifts in Demand Curve
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
12. What is supply?
Supply exists only when there iswillingness and ability to produce and sell a product
(good or service) or resource.It is a relationship between the quantity supplied and price
of a product or resource.To be able to supply an item means one has; resources and
technology to produce it; can profit from producing it; has made a definite plan to produce
and sell it.
Determinants of Supply are; Price of the good (x); Price of related goods such as
substitute goods (share inputs, e.g., plot of land) or complementary goods (jointly
produced, e.g., beef & hides); Price of resources used to produce it such as land, labour,
capital & entrepreneurship; Number of suppliers; Technology; and future expectations (on
above)
a) Deriving an Individual Supply Curve (due to changes in price of good x)
The slope of the supply curve is only influenced by changes in price of the commodity in
question (good x). In fig 5 and 6 below, the supply schedule provides changes in quantity
supplied in response to changes in price. From fig. 5, we notice that the lower the price,
the lower the goods sold. When we plot these combinations we get the supply curve in
fig. 6. This results in a movement along the supply curve referred to as change in
quantity supplied.
Fig. 5: Individual Supply
Schedule
Fig. 6: Individual Supply Curve
Just as in the case of the market demand curve, the market supply curve too is a
Page 239
horizontal addition of the individual supply curves at a given price.
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
13. b) Forces of Supply and Demand (Surplus)
When the supply curve and demand curve
are overlapped on each other, they reveal
either a disequilibrium or equilibrium. Fig.
7 on the left reveals a surplus
disequilibrium. For example;
At P = 17,
Quantity demanded = 45 while
Quantity supplied = 57
A surplus of 12 results (or 45-57)
With a surplus, suppliers undercut each
other pushing prices down towards
equilibrium.
Fig. 7: Surplus Disequilibrium
c) Forces of Supply and Demand (Shortage)
When the supply curve and
demand curve are again
overlapped on each other, they
again reveal either a
disequilibrium or equilibrium.
However, in this case in fig. 8 on
the left reveals a shortage
disequilibrium. For example;
At P = 10,
Quantity demanded = 70 while
Quantity supplied = 10
A shortage of 60 results (or 10-
70)
With a shortage, consumers
Fig. 8: Surplus Disequilibrium
Page 240
outbid each other pushing prices
up towards equilibrium.
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
14. d) Market Equilibrium
Finally, when the supply curve and
demand curve are once more overlapped
on each other, they again reveal either a
disequilibrium or equilibrium. However, in
this case as shown in Fig. 9 on the left
reveals equilibrium.
For example;
At P = 15,
Quantity demanded = 50 and
Quantity supplied = 50
Therefore at P = 15, there is an equilibrium
(i.e., Qs = Qd = 50).
Neither surplus nor shortage results so the
market clears and is stable
Fig. 7: Surplus Disequilibrium
Page 241
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
15. Porterโs Competitive Strategy (5 minutes)
In each of these cases, the farmer who intends to transform into a firm should anticipate
and plan for five key challenges as envisioned by Michael Porter. These include
substitutes, potential entrants, buyer power, supplier power and intensity of rivalry as
shown in figure 10 below.
Substitutes
In this case, the farmer must expect that others will produce substitute goods (similar but
not exact) that will compete with the farmerโs products in the market place and should
therefore have a plan on how to compete with competitors.
Potential Entrants
Even where there is no competition, the farmer must always anticipate new competitors.
This may mean satisfying customers even when there is no competition.
Buyer Power
In cases such as farming, buyers in the goods market tend to have power to dictate the
prices. This is especially true with middlemen. In other cases, there tend to be too many
producers that give buyers more power to dictate prices. These and many other similar
challenges should be anticipated.
Supplier Power
This is where suppliers in the factor market and product market may have power over
the farmer and thus dictate prices of land, labour, capital and other raw materials.
Intensity of Rivalry
Typically, this occurs in the competitive market where others produce exact products,
such as in farming where there are very many producers of the same product. This may
Page 242
mean fighting each other by cutting prices while improving quality and increasing
amounts per unit price.
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
16. Conclusion
Hopefully, you can now see that an understanding of the basic principles of economics
can be an advantage when involved with agricultural enterprises. These principles can
provide you with an understanding of how the market operates but can also provide you
with a set of strategies to respond to changes in the market. It can also provide you with
ideas on how to make yourself more competitive within that same market.
Summary
In this lesson we studiedโฆ
Four factors of production: land / natural resources, capital
resources, labour and entrepreneurship.
Market structures: competitive, monopoly, monopolistic and
oligopoly.
Central questions that govern economic thinking, namely the five
fundamental questions: What goods and services are produced
and what quantities?;How are goods and services produced?;
When are goods and services produced?; Where are goods and
services produced?; Who consumes the goods and services
produced?
The principles governing efficient allocation of resources
including concepts of supply and demand and market
equilibrium or disequilibrium with shortages or surpluses.
Competitive strategies as defined by Porter. These include being
aware of and responding to the existence of substitutes,
potential entrants, buyerโs power, supplierโs power and
competitive rivalry.
Page 243
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
17. Glossary
Demand
In economics, demand is the desire to own anything, the ability to pay for it, and the
willingness to pay. The term demand signifies the ability or the willingness to buy a
particular commodity at a given point of time.(Perkin, 1997) or
http://en.wikipedia.org/wiki/Demand
Economies of Scale
Economies of scale, in economics, refers to the cost advantages that a business
obtains due to expansion. There are factors that cause a producerโs average cost per
unit to fall as the scale of output is increased. "Economies of scale" is a long run
concept and refers to reductions in unit cost as the size of a facility and the usage
levels of other inputs increase. (Perkin, 1997) or
http://en.wikipedia.org/wiki/Economies_of_Scale
Factors of Production
Factors of productionโฆ refer(s) specifically to the primary factors, which are stocks
including land, labour (the ability to work), and capital goods applied to production. The
primary factors facilitate production but neither become part of the product (as with raw
materials) nor become significantly transformed by the production process (as with fuel
used to power machinery). (Perkin, 1997) or
http://en.wikipedia.org/wiki/Factors_of_production
Supply
In economics, supply is the amount of some product producers are willing and able to
sell at a given price all other factors being held constant. Usually, supply is plotted as a
supply curve showing the relationship of price to the amount of product businesses are
willing to sell. (Perkin, 1997) or
http://en.wikipedia.org/wiki/Supply_(economics) Page 244
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics
18. Feedback
Feedback Activity 3
(What to produce?)
Consumer demand
Tastes and preferences change over time
Resources available and potential
(How to produce?)
Resource endowment and the need to meet the consumerโs budget.
In reality, it restructures them and in many instances reinvents new ones.
(When to produce?)
While each product has a season for production, strategic farmers focus on
season for demand.
Changes in consumer demand.
(Where to produce?)
Access to customers.
Location of the consumers.
(For whom to produce?)
Willingness (tastes & preferences) and ability to pay (income and prices).
Forces of supply & consumer demand.
Page 245
Module 5: Agribusiness Management for Farmer Organisations Lesson 2:Basic Principles of Economics