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.
Feeding calves from a start weight of 550 pounds to a finished weight of 1150 pounds requires 203 days of feeding when the animals have an average daily gain of 2.95 pounds per day.It is also assumed that the cattle inventory turns about 1.7 times a year.,150 pound fed steer. A price for finished cattle is determined from the average monthly Iowa, Southern Minnesota live cattle price reported by Ag Market News. The live cattle price reported as dollars per hundred weight, is multiplied by 11.5 to determine the per head value of a finished 1,150 pound animal.