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.
Cattle will normally consume 1.4 to 4.0% of their body weight daily depending upon the quality of feed: 1  Cows will consume between 1.8% and 2% of their body weight on a dry basis of a low quality feed. 2  Cows will consume between 2.0% and 2.2% of their body weight on a dry basis of an average quality feed. Cows will consume between 2.2% and 2.5% (during lactation it may be as high as 2.7%) of their body weight on a dry basis of a high quality feed.