Competition and Cooperative Behavior in the Potato Industry 1) What is the problem with the potato...

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Competition and Cooperative Behavior in the Potato Industry
1) What is the problem with the potato industry?
2) Can we consider the potato farms a competitive market? Why?
3) What Idaho farmers did? Why?
4) What Idaho farmers did in September 2004? Why and what was the effect of this action?
5) Does the action of Idaho farmers ethical?
6) What are the factors that affected the demand for potato?

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David · Accepted Answer

Competition and Cooperative Behavior in the Potato Industry 
(Answers) 
 
1) What is the problem with the potato industry? 
In the year of 1996, the price of fresh potatoes went down from $8 per 100 pound to $1.50 or $2 
per 100 pound. The reason for this one this one third decrease in the price from the production 
price was the excess supply of the fresh potatoes.  It happened because potato agriculturists let 
the market decide the value they got for their harvests. High costs made agriculturists over 
deliver, which drove cost down underneath the cost of its production that makes the business 
unprofitable. Every agriculturist attempted to pick up the market share under the presumption 
that different farmers would have a little yield because of climate, frosts, pests or some other 
cataclysmic disaster. In case, when the production conditions turned out good, the expanded 
supply of potatoes that caused the decrease in price which lead the financial hardship. 
2) Can we consider the potato farms a competitive market? Why? 
Yes,

Competition and Cooperative Behavior in the Potato Industry 1) What is the problem with the potato industry? 2) Can we consider the potato farms a competitive market? Why? 3) What Idaho farmers did?...

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