34 
pound than the range production, the more the gain that is put on 
the animal in the feed lot, the higher is the cost to the feeder per 
pound of the finished animal. The " spread " between the prices paid 
for, the animals as feeders and received for them as beef animals 
varies with the degree to which they are finished off, for animals 
with a high degree of finish bring relatively higher prices. The 
greatest profit per pound of beef sold will be obtained at the point 
where the difference between the cost of producing the beef (the cost 
of buying the feeder plus all subsequent costs) lies the furthest be- 
low the value of the finished animal. To determine this point 
exactly, it would not only be necessary to determine the cost (at the 
least-cost combination) of bringing the animals to each particular 
degree of finish, but also to determine the price differential for each 
variation in finish. Knowing both, it would then be possible to 
locate, for any particular combination of input costs and beef prices, 
just what combination would probably return the largest profit per 
pound of beef produced. 
Having thus determined the input combination which would result 
in the largest profit per unit of output, multiplying these profits 
per pound by the number of pounds which would probably be pro- 
duced at that combination would give the best approximation for 
the total return from the enterprise. Comparing the estimated total 
returns from varying combinations would indicate the most profit- 
able combination for the beef enterprise under the particular condi- 
tions assumed. 
The problem of the most profitable combination, like the problem 
of the least-cost combination, is probably not one that can be solved 
directly by any form of investigation. The probable variations in 
input per unit of output as input changes can be determined by 
investigation, but the rest is purely a synthetic process to be per- 
formed by each individual producer on the basis of probable cost 
rates and prices. The variation in input per unit of output as more 
volume is handled by any manager may be determinable in a general 
way for any one system of farming; but in the last analysis it is 
purely an individual problem for each farmer, depending entirely 
upon his capacity and efficiency as a manager for the particular kind 
of production in question and the particular kind of cost factors 
available for his use. 
FOR SEVERAL ENTERPRISES SIMULTANEOUSLY 
Determining the most profitable combination, like determining 
least cost, is complicated greatly by the fact that farming usually 
involves more than one enterp^se. The analysis thus far assumes 
one product only. How shall the highest total return with manage- 
ment applied to several different enterprises, each with its own set of 
prices, be determined? This bulletin will not attempt to answer this 
question. There must first be made a careful analysis of somewhat 
detailed data from several hundred farms in one area, in order to 
obtain necessary illustrative material of the sort used in discussion 
of analyses, before attempting to solve the more complicated question 
of return to management. Such an analysis must take account of 
volume of output, proportions of enterprises, and input combina- 
tions. 
