Final answer:
Performance data in beef cattle is influenced by diet, geography, sustainability practices, and economic factors such as absolute advantage and opportunity cost. Brazil has the absolute advantage in beef production, while the US leads in auto production. Analyzing these factors is vital for understanding the productivity and impact of the beef industry.
Step-by-step explanation:
Performance data in beef cattle is determined by a variety of factors, including the animals' diet, the geography of the production area, and sustainability practices. Cattle that are grazed on open lands and fed a diet of corn and silage until they reach market size are a typical scenario of beef production. However, some ranchers prefer a grass-only diet for their cattle, which can result in healthier beef with a better taste, often fetching a higher market price. Geographic factors, like the dispersion of cattle in regions such as Appalachia and the Ozarks, also play a role in the performance of beef cattle.
In Brazil, the beef industry has faced international pressure due to the environmental impact of cattle ranching, such as greenhouse gas emissions and deforestation. Sustainability programs are beginning to be implemented to help ranchers manage their resources more effectively and reduce their impact on the environment. This can lead to farms producing less greenhouse gas emissions per kilogram of beef. Finally, economic cost-benefit analyses, as conducted by Lusk and Norwood, help determine the production costs and nutrient content of beef at both the farm and retail levels, which can inform ranchers' business decisions.
Using Brazil and the United States example, when analyzing absolute advantage and opportunity cost in beef production, Brazil has the absolute advantage in beef since it can produce more pounds of beef than the United States with the same resources. Conversely, the United States has the absolute advantage in producing autos since it can produce more autos than Brazil with the same resources. The opportunity cost is what you give up to produce one more unit of something else, so for Brazil, the opportunity cost of one pound of beef is equal to the production of 0.1 autos, and for the United States, it's 0.75 autos.