Final answer:
Carcasses being too fat and retail cuts being too large are related to a higher yield grade. The yield grade is an estimate of the amount of boneless, trimmed retail cuts from a carcass, and a higher grade often indicates more fat.
Step-by-step explanation:
The relative merit area that causes carcasses to be too fat and retail cuts to be too large is a) Yield grade. Yield grade is a measurement used in the meat industry to estimate the amount of boneless, trimmed retail cuts that a carcass will produce. Carcasses with a higher yield grade typically have more fat and result in larger cuts of meat, which may exceed the preferred size for retailers and consumers. This is often seen as less desirable because it can lead to increased trimming and waste, as well as portions that are not in line with consumer preferences or dietary guidelines.