PPT4.ACE232.09 - Key questions to ask whether for yourself...

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Key questions to ask – whether for yourself or farm business 1) Does your household/business operate on an annual budget? 2) Do you know how much your family/business spends each year for food, clothing, and shelter? 3) Do you/your family/your business have a clearly defined set of daily, weekly, monthly, annual, and lifetime goals? 4) Do you spend time planning your financial future?
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Equal Marginal Principle When have limited amounts of an input, apply the EMP: A limited input should be allocated among alternative uses in such a way that the marginal value products of the last unit used on each alternative are equal
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If you have 2400 acre-inches of water available, how should you allocate it? 1st 2nd 3rd 4th 5th 6th
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Note: Equal marginal principle prevents mistake of maximizing profit on one enterprise by using the input until MVP = MIC and not having enough to use on other enterprises
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Maximizing profit from the total business requires proper
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PPT4.ACE232.09 - Key questions to ask whether for yourself...

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