AGEC 340- Final Exam Questions
Define Accounting profit - correct answer-Used to measure the performance and success of
a business
Define Economic Profit - correct answer-Examines the opportunity cost of alternative uses
for resources within a business
Define Product Positioning - correct answer-Creating the desired image of a product or
service in the consumers mind.
Explain a value ratio - correct answer-- Greater than 1 = Perceived benefits are more than
perceived costs
- Equal to 1 = Perceived benefits equal perceived costs
- Less than 1 = Perceived benefits are less than perceived costs
Explain how marketing resolves the conflicting needs of producers and consumers. - correct
answer-Marketing bridges the gap between producers and consumers.
Explain the difference between Implicit and Explicit cost. - correct answer-Explicit: Payment
made to suppliers of resources such as land, labor, materials, fuel and the like.
Implicit: Cost for which there is no cash outlay
Give an example of derived demand. - correct answer-Agricultural producers demand for
fertilizer is derived from the demand for corn
How does an Agribusiness firm earn the right to make a profit? - correct answer-Only by
satisfying customer needs does a firm earn the right to make a profit.
How does our textbook define Management in Agribusiness? - correct answer-Management
is the Art and Science of successfully pursuing the desired results with the available
resources to the organization.
What are two specific scenarios that we discussed in class in which an agribusiness might
use contribution to overhead pricing? - correct answer-1) when there is a small unused
production capacity available
2) when the firm can not sell the product for a higher price.
What does place refer to in the marketing mix? - correct answer-The transfer of ownership
What is a firms competitive advantage? - correct answer-The factor or reason a firm has an
advantage over competition.
Define Accounting profit - correct answer-Used to measure the performance and success of
a business
Define Economic Profit - correct answer-Examines the opportunity cost of alternative uses
for resources within a business
Define Product Positioning - correct answer-Creating the desired image of a product or
service in the consumers mind.
Explain a value ratio - correct answer-- Greater than 1 = Perceived benefits are more than
perceived costs
- Equal to 1 = Perceived benefits equal perceived costs
- Less than 1 = Perceived benefits are less than perceived costs
Explain how marketing resolves the conflicting needs of producers and consumers. - correct
answer-Marketing bridges the gap between producers and consumers.
Explain the difference between Implicit and Explicit cost. - correct answer-Explicit: Payment
made to suppliers of resources such as land, labor, materials, fuel and the like.
Implicit: Cost for which there is no cash outlay
Give an example of derived demand. - correct answer-Agricultural producers demand for
fertilizer is derived from the demand for corn
How does an Agribusiness firm earn the right to make a profit? - correct answer-Only by
satisfying customer needs does a firm earn the right to make a profit.
How does our textbook define Management in Agribusiness? - correct answer-Management
is the Art and Science of successfully pursuing the desired results with the available
resources to the organization.
What are two specific scenarios that we discussed in class in which an agribusiness might
use contribution to overhead pricing? - correct answer-1) when there is a small unused
production capacity available
2) when the firm can not sell the product for a higher price.
What does place refer to in the marketing mix? - correct answer-The transfer of ownership
What is a firms competitive advantage? - correct answer-The factor or reason a firm has an
advantage over competition.
