Past years

• Partial budget


  Enumeration of the benefit of proposed action
• Partial budget analysis enumerates the revenue foregone of proposed action
• Calculating benefit-cost ratio of proposing the Foot and Mouth disease vaccination for small-scale dairy cattle farms in Vietnam

  1. Additional cost

  2. Foregone revenue

  3. Saved cost

  4. Additional revenue
• Benefit-cost ratio of 4.63 means to proceed with FMD vaccination for small scale dairy farms
• Items not in partial budgeting categories

  • Costs no longer incurred such as veterinary expenses
  • Additional costs incurred due to the control procedure such as drugs and management procedures
  • Lower disease incidence due to adoption of a proposed control program
  • Forgone returns such as income lost from a reduced number of culled animals
• Optimal level of expenditure for Mastitis prevention

  Point X
• Avian Influenza outbreak


  • Premature mortality of chicken
  • Reduces the number of eggs being produced
  • Could affect human well-being directly
  • Reduce the total value a society gains from produced eggs
  • Diagnosis costs in the distribution chain
  • Lowers the feed conversion rate
• Isoquant curve


  Reflects the combinations of two inputs that result in a particular level of output
• Stages of production


  • Stage I
  • Stage II
  • Stage III
• At stage 1, total production is increasing at a decreasing rate and marginal physical product is higher than average physical product
• Animal production economics


  A social science that deals with how consumer, producers and society can choose among the alternatives uses of scarce resources in the process of producing, exchanging and consuming animal products
• Types of resources at dairy farm

  • Water
  • Milk
• Modelling process


  1. Problem

  2. Make assumption

  3. Construct model

  4. Solve model

  5. Validate solution

  6. Interpret solution
• Determining number of units to sell to gain a profit of RM60,000

  1. Variable cost per unit = RM5

  2. Fixed cost = RM50,000

  3. Selling price per unit = RM15

  4. Profit = RM60,000
• Calculating break-even point in units

  1. Variable cost per pack = RM5.50

  2. Fixed cost = RM300

  3. Selling price per pack = RM15
• Resources


  Physical factors and services that are the basis for generating the products, and as such, are the starting point of economic activity
• Types of inputs


  • Building
  • Machine
  • Feed
  • Price of beef
  • Treatment
• Total revenue


  Market price of meat (RM/kg) x Quantity of meat sold (kg)
• Opportunity cost is Alternative 2 (Vaccination alone and obtain a net present value of RM 5 million)
• Expenditure (E)


  Treatment and prevention of mastitis
• If marginal product is equal to average product, then average product is not changing
• Designing, launching and running a new business is not related to the economics of animal health decision making
• Finding profit functions


  15x-85,000
• Finding total cost functions

  85,000+7x
• Finding total revenue functions

  22x
• Finding break-even point (RM)

  RM124,674
• Finding functional total cost, TC (Q)

  250,000 + 10Q
• Finding quantity to be sold if target profit is RM50,000

  12,000 units
• Finding function of profit earned by the company

  25Q-250,000