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Based on the graph above, indicate the average price gained by farmers in the cooperative. Justify why farmer B may be tempted to leave the cooperative. Calculate the price gap between Farmer B and Farmer C based on the graph above.

Business/Management

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Here are the answers based on the graph:

2.2.1 The average price gained by farmers in the cooperative is represented by the "Pooled Average Return" line.

90 Price/Unit\boxed{\text{90 Price/Unit}}

2.2.2 Farmer B's individual market price (approximately 112 Price/Unit) is significantly higher than the pooled average return (90 Price/Unit). Therefore, Farmer B may be tempted to leave the cooperative because they would earn more by selling their produce independently rather than through the cooperative.

2.2.3

  1. Identify the individual market price for Farmer B and Farmer C from the graph.

    • Individual Market Price for Farmer B ≈112\approx 112 Price/Unit
    • Individual Market Price for Farmer C =70= 70 Price/Unit
  2. Calculate the price gap.

    Price Gap=Price (Farmer B)−Price (Farmer C)\text{Price Gap} = \text{Price (Farmer B)} - \text{Price (Farmer C)} Price Gap=112−70\text{Price Gap} = 112 - 70 Price Gap=42 Price/Unit\text{Price Gap} = \boxed{\text{42 Price/Unit}}
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