- Opportunity Costs
Opportunity cost is a concept used to specify a cost for using resources. It is very important in farm management but easily misunderstood.
- Long-Run Versus Short-Run
A manager’ s planning horizon affects how prices and quantities are chosen.
- Economic Versus Accounting Values
The distinction between economic and accounting values is made by considering three basic questions. First, how is the value determined? Second, how is the value allocated between enterprises? Third, is the value cash or noncash?