The U. S. Bureau of Land Management sets a fee for ranchers who graze their animals on public land. The fee is equal to $1.43 per animal unit per month - the amount of forage needed to feed one cow and its calf, or five sheep, for a month. The market rate for grazing on private land is about $14 per animal unit per month. Why do you think there is a difference?

Question

Business

Jaylon Quinn

26 August, 22:56

The U. S. Bureau of Land Management sets a fee for ranchers who graze their animals on public land. The fee is equal to $1.43 per animal unit per month - the amount of forage needed to feed one cow and its calf, or five sheep, for a month. The market rate for grazing on private land is about $14 per animal unit per month. Why do you think there is a difference?

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Answers (1)

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Kennedi Gill · Answer 1

Answer: Business motive

Explanation:

The primary motive for setting up private enterprises is strictly for profit, it equally believe in profit maximization in which it's a

market price taker i. e it takes the highest price available in the market.

Public enterprises can have diverse reasons for it's establishment, sometimes it's to provide essential services to the populace and it does not normally takes it's price from the market.

This explains some of the reasons for the price difference in the above analysis.