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Which of the following is a necessary capital investment for starting a free-range poultry farm? workers to collect and package eggs ground corn for feeding the chickens chicks and eggs to start the population delivery trucks to bring eggs to stores

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Final answer:

The crucial capital investment for starting a free-range poultry farm is the initial stock of chicks and eggs. This is part of the physical capital necessary for farm production, alongside land, water, and agricultural technology.

Step-by-step explanation:

When starting a free-range poultry farm, one essential capital investment is the chicks and eggs to start the population. This is because the physical capital components such as land, water, and seeds and the technology used for production are crucial for the generation of outputs such as eggs and poultry meat. The combination of these elements, along with other necessary resources and infrastructure, contribute to the overall productivity of the farm.

Factors like the quality of labor (human capital), physical capital (which includes resources and infrastructure like roads, electricity, water), as well as technology, significantly affect production capabilities. Ground-nesting birds like chickens require immediate care after hatching, therefore ensuring a proper initial population is vital for the farm's success. Additionally, it's crucial to have a system in place for efficiently raising and maintaining this population, which ties into both human capital and physical capital investments.

User Joseph Ghassan
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6 votes

Final answer:

To start a free-range poultry farm, essential capital investments include chicks and eggs, land, facilities, technology, and equipment for the maintenance and care of the chickens.

Step-by-step explanation:

For starting a free-range poultry farm, certain types of capital investment are necessary to produce and support the operations. Chicks and eggs are essential to start the population, which is a key physical capital input as they are the initial source of the birds that will lay the eggs and possibly be sold for meat. Other necessary capital investments involve infrastructure like land, water supplies, and appropriate facilities for the animals. Equipment for maintaining and monitoring the chickens, such as feeding systems and health care equipment, is also vital.

In addition, capital investment in technology is important for efficient production. For example, investments in technology for the incubation of eggs or automated feeding can help increase production levels. The modern farmer relies on a variety of physical and human capital as well as technology to run a successful operation.

User Dennisbot
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