Question

When considering the total cost of producing a pound of beef, why is it important to account for the cost of breeding, processing, and transportation?

A. because these costs have increased dramatically due to global trade regulations

B. because if these costs are high, the farmer might profit more from pastoral nomadism

C. because these are necessary costs in vertical integration

D. because if these costs drop, global unemployment rates may rise

E. because these are part of beef’s cost in the global food supply chain

Answer 1

E. because these are part of beef’s cost in the global food supply chain

Step-by-step explanation:

The beef industry includes the processes that are essential for the growth and the rearing of the cattle. The processes include feeding, breeding, processing and marketing of the finished products in the market. It consumes a lot of time and a large number of people are associated behind the completion of these processes. Eventually, the cost price of the finished good that is, the beef surges thereby increasing the cost of them. The beef product that is available for the customers for their consumption undergoes a lot of process and hence the cost price becomes high. Hence, the selling price of the beef becomes high for the consumers.