The decisions and choices about combining different enterprises for optimal utilization of resources include;
1. Production and organisation problem decisions.
A farmer must make decisions on certain fundamental questions or problems regarding production of enterprises and organisation of the farm business. These questions involve;
land resources; what to produce and how to produce. The farmer must decide what scale of his farming operations will be and how to equip the farm business. Such decisions can be further categorized into:
Strategic decision: Includes deciding the best size of the farm/firm. This depends on a number of factors such as intensity of land use, managerial ability of the farmer, level of technology/mechanisation of farm, types of business, type of farming area , water availability among others.
Operation decisions: Continuously made in day-to-day operations of the farm business and they include; selection of the farm enterprise (what to produce); product mix/enterprise mix and resource use (how much and what range to produce); how to produce that is the selection of least cost or efficient method of production; when to produce that is the timing.
2. Administrative problem decisions
These are decisions relating how to use the time and how to do things/operations correctly. Decision on sources of finance, decisions on how to finance the business and utilization of funds, decisions on supervision of work, decisions on accounting and book keeping among others.
3. Marketing problem decisions
This involves the buying and selling decisions.
Buying decisions; relate to buying/ purchase of farm inputs for example equipments, fertilizers, and seeds from suppliers; decision on whom to acquire from, how much inputs to acquire, what to buy, when to buy and where to buy.
Selling decisions; decisions in relation to selling farm produces, decision of what to sell, when to sell, where/which market to sell in.
Dullayo answered the question on May 13, 2018 at 11:35
- “Commercial banks are not only dealers of money but manufacturers of money and credit also.” Explain the statement.(Solved)
“Commercial banks are not only dealers of money but manufacturers of money and credit also.” Explain the statement.
Date posted: May 12, 2018. Answers (1)
- Distinguish between revenue expenditure and capital expenditure of a government budget.
Give two examples of each.(Solved)
Distinguish between revenue expenditure and capital expenditure of a government budget.
Give two examples of each.
Date posted: May 12, 2018. Answers (1)
- Explain the concept of deflationary gap. Also explain the role of “margin requirements” in reducing it(Solved)
Explain the concept of deflationary gap. Also explain the role of “margin requirements” in reducing it
Date posted: May 12, 2018. Answers (1)
- Explain the concept of inflationary gap. Also explain the role of “legal reserves” in reducing Inflationary gap. (Solved)
Explain the concept of inflationary gap. Also explain the role of “legal reserves” in reducing Inflationary gap.
Date posted: May 12, 2018. Answers (1)
- Which transactions determine the ‘balance of trade’? When is balance of trade in surplus?(Solved)
Which transactions determine the ‘balance of trade’? When is balance of trade in surplus?
Date posted: May 12, 2018. Answers (1)
- Define foreign exchange rate. How is it determined under flexible exchange rate system? (Solved)
Define foreign exchange rate. How is it determined under flexible exchange rate system?
Date posted: May 12, 2018. Answers (1)
- Write any three precautions to be taken while estimating national income by expenditure Method.(Solved)
Write any three precautions to be taken while estimating national income by expenditure Method.
Date posted: May 12, 2018. Answers (1)
- Giving reasons, explain the treatment assigned to the following while estimating national Income: (i) Social security contributions by employees.(ii)Pension paid after retirement.(Solved)
Giving reasons, explain the treatment assigned to the following while estimating national Income:
(i) Social security contributions by employees.
(ii)Pension paid after retirement.
Date posted: May 12, 2018. Answers (1)
- Explain how ‘non-monetary exchanges’ are a limitation in taking GDP as an index of welfare.(Solved)
Explain how ‘non-monetary exchanges’ are a limitation in taking GDP as an index of welfare.
Date posted: May 12, 2018. Answers (1)
- State the Say’s Law of markets.(Solved)
State the Say’s Law of markets.
Date posted: May 12, 2018. Answers (1)
- State the two components of money supply(Solved)
State the two components of money supply
Date posted: May 12, 2018. Answers (1)
- Define ‘Statutory Liquidity Ratio’.(Solved)
Define ‘Statutory Liquidity Ratio’.
Date posted: May 12, 2018. Answers (1)
- Market for a good is in equilibrium. There is “increase” in supply of the good. Explain the chain of effects of this change(Solved)
Market for a good is in equilibrium. There is “increase” in supply of the good. Explain the chain of effects of this change
Date posted: May 12, 2018. Answers (1)
- Explain the distinction between ‘’change in quantity supplied” and “change in supply”(Solved)
Explain the distinction between ‘’change in quantity supplied” and “change in supply”
Date posted: May 12, 2018. Answers (1)
- Define marginal cost. Explain its relation with average cost(Solved)
Define marginal cost. Explain its relation with average cost
Date posted: May 12, 2018. Answers (1)
- Explain how changes in prices of inputs influence the supply of a product.(Solved)
Explain how changes in prices of inputs influence the supply of a product.
Date posted: May 12, 2018. Answers (1)
- What does the Law of Variable proportions show? State the behaviour of marginal product according to this law(Solved)
What does the Law of Variable proportions show? State the behaviour of marginal product according to this law
Date posted: May 12, 2018. Answers (1)
- Due to the increase in population the demand for agricultural land has” increased”. But the supply of agricultural land is fixed. Explain two methods...(Solved)
Due to the increase in population the demand for agricultural land has "increased". But the supply of agricultural land is fixed. Explain two methods by which the demand for land can be “decreased”
Date posted: May 12, 2018. Answers (1)
- Explain the implications of the feature ‘barriers to entry’ under monopoly(Solved)
Explain the implications of the feature ‘barriers to entry’ under monopoly
Date posted: May 12, 2018. Answers (1)
- Explain the implications of the feature’ homogeneous products in a perfectly competitive market.(Solved)
Explain the implications of the feature’ homogeneous products in a perfectly competitive market.
Date posted: May 12, 2018. Answers (1)