News reports from the western United States occasionally report incidents of cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets. Assuming that this is rational behavior by profit-maximizing "firms," explain what economic factors may influence such behavior
If the selling price is not sufficient to cover the variable cost of sending the calves to market, this (potentially emotionally upsetting) behavior makes economic sense.
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According to real business cycle theory, recessions are caused by
A. monetary factors affecting aggregate demand. B. a decline in the supply of money. C. changes in resource availability and technological innovation. D. people choosing leisure rather than work.
In the above figure, the x-coordinate of point b is
A) 1. B) 2. C) 3. D) 14.
In a recession, GDP:
a) Grows negatively b) Grows slowly c) Grows by 0% d) Grows rapidly
Marginal factor cost is
A) the change in the value of output from using an additional unit of the factor. B) the cost of an additional unit of output. C) the total value of factor cost divided by the one cost that is being held constant. D) the cost of using an additional unit of an input.