money image by cherie from Fotolia.com. Economic models help managers and economists analyze the economic decision-making process. Each model relies on a number of assumptions, or basic factors that are present in all decision situations.he fundamental basis of economic decision making is individuals' or organizations' desire to maximize benefits while minimizing costs. This balancing act is referred to as maximizing value, and it is a skill that takes practice to master.
Most cattle producers are familiar with the term feed conversion.. Advertisement. Most cattle producers are familiar with the term feed conversion.. It is simply the amount of feed an animal consumes as compared to the amount of body weight gained, expressed as a ratio. Feed conversion ratios in the neighborhood of 6:1 (6 lbs of feed per pound of gain) are common in modern beef cattle feedlots. Stocker cattle producers are also interested in feed conversion, but the calculation is a little different.
At Buchananâs Colorado ranch, it takes 20 to 30 acres per year to raise a cow-calf pairâslightly fewer acres than that in the past two years thanks to some much-welcomed rain. âThatâs a lot of grass,â he admits. Thereâs a reason beef cattle are most commonly finished in feedlots. Itâs because most grains have higher protein content than most grasses. Itâs easier to pack on the pounds and faster to bring cattle up to market weight (1,200 to 1,500 pounds) when feeding them corn than it is to finish them on forage alone.