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They can be treated as a commodity as they are graded on value. How would a commodity market work if each instance of the commodity had a different value? Both
by DKnoll 10y ago
They can be treated as a commodity as they are graded on value. How would a commodity market work if each instance of the commodity had a different value? Both live steers, and their resulting leather, beef and other byproducts are sold based upon weight and/or grade.
For example, 'a cow' is not a commodity... but a grade 3 live steer is.
Movie theatres do not price films based upon quality, but the distributors certainly do (I managed a movie theatre). You cannot commoditise a movie ticket, each theatre provides different facility and presentation quality.
- Retric 10y agoSure, cattle auctions sell the animal for an individual price based on health, weight, body size etc. At the extreme end animals can sell for 150,000+ if they seem to have good DNA for breeding. http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty_queen_sold_in_sy.html http://www.syracuse.com/news/index.ssf/2013/03/bovine_beauty... Even if there just being butchered people make bids based on expected yields. This gets back to meat grades etc. However, animals are also sold in bulk without individual prices.