A sheep farmer has 200 sheep in his flock. Helminthiasis is a problem in his flock & causes a mortality of 5% per year. He want to implement a strategic deworming by dosing his sheep two times a year. By doing so the farmer could be able to reduce the mortality due to helminthosis from 5% to 0%. The average price a sheep in the farm is 800 birr. When a sheep died due disease problem the skin can be sold at price of 100 birr per skin. The overall cost of deworming per year per sheep is 20 birr. Conduct economic analysis to determine whether strategic deworming is economically useful to the farm.
A sheep farmer has 200 sheep in his flock. Helminthiasis is a problem in his flock & causes a mortality of 5% per year. He want to implement a strategic deworming by dosing his sheep two times a year. By doing so the farmer could be able to reduce the mortality due to helminthosis from 5% to 0%. The average price a sheep in the farm is 800 birr. When a sheep died due disease problem the skin can be sold at price of 100 birr per skin. The overall cost of deworming per year per sheep is 20 birr. Conduct economic analysis to determine whether strategic deworming is economically useful to the farm.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A sheep farmer has 200 sheep in his flock. Helminthiasis is a problem in his flock & causes a mortality of 5% per year. He want to implement a strategic deworming by dosing his sheep two times a year. By doing so the farmer could be able to reduce the mortality due to helminthosis from 5% to 0%. The average price a sheep in the farm is 800 birr. When a sheep died due disease problem the skin can be sold at price of 100 birr per skin. The overall cost of deworming per year per sheep is 20 birr. Conduct economic analysis to determine whether strategic deworming is economically useful to the farm.
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