A situation where the total cost

per unit of output decreases as a result of increases in

the size of the business. As farms and ranches become

larger, the relative proportions of land, labor, and capital

typically change.

The desire and ability of the

consumer to obtain a commodity. The amount of a

commodity that a consumer is willing and able to buy.

A ratio of output to input. Economic

efficiency refers to the ratio of output value to output cost.

Production efficiency refers to the ratio of output quantity

to input quantity.

The percentage change in one variable

in response to a percentage change in another variable.

Can refer to the percentage change

in the quantity of a good that is purchased in response to

a 1% change in price or the percentage change in the quantity of a good that is

supplied in response to a 1% change in price.

A specific process or activity producing

a single output.

Shows the expected returns

and costs associated with a specific production activity

(e.g., soybeans) while a whole farm budget shows

the expected returns and costs associated with all the

enterprises in a business.

Something that has a separate and distinct

existence. For example, a corporation is an entity that is

separate and distinct from its owners and shareholders, it can continue to exist if they change.

The price at which the quantity

supplied is equal to the quantity demanded for a particular

commodity at a given time and place.

The financial measure of the value of a

business or person. The value is derived by subtracting

the amount of total liabilities from the value of all assets

under the control of a business or individual. Calculated

on a cost or market value basis.

Measures the relationship of

the farm's net worth (owner equity) to total farm assets.

The ratio is computed by dividing total farm net worth by

total farm assets.

The total value a person has in all property,

real and personal.

The legal, economic and social

act of determining the allocation of a person's property to

appropriate heirs. It takes into account the laws of wills,

taxes, insurance, property, and trusts, and carries out a

person's wishes for the disposition of property at death.

A person appointed in a will

or by the court system to carry out requests and dispose

of all property in accordance with the laws and desires

of the deceased.

Any costs associated with producing a

product.