Introduction to Agribusiness

Flashcards covering key concepts from the Introduction to Agribusiness lecture notes.

Limited Resources

Resources that are frequently limited in agribusiness, including land, labor, machinery, buildings, capital, and management.

Comparative Advantage

The tendency of an economic unit to focus on producing items that offer the greatest relative advantage or the least relative disadvantage.

Competitive Relationship

A relationship where enterprises compete for the same resources, leading to a decrease in the output of one when the output of the other increases.

Supplementary Relationship

A relationship in which an increase in one enterprise has little or no effect on another.

Complementary Relationship

A relationship where one enterprise contributes to the production of another, increasing in tandem.

Independent Enterprise

An enterprise that is neither positively nor negatively connected to another enterprise.

Examples of Limited Resources

Land, labor, machinery and equipment, buildings, capital, management.

Enterprise Selection Assumptions

Assumes there is a viable market for the product and that the commodity can be economically grown in the area.

Example of Complementary Enterprise

Wheat planted after alfalfa, where one crop benefits the other.

Example of Competitive Enterprises

Wheat and barley, which compete for the same resources.