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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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2 stepsHere 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.
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
Identify the individual market price for Farmer B and Farmer C from the graph.
- Individual Market Price for Farmer B Price/Unit
- Individual Market Price for Farmer C Price/Unit
Calculate the price gap.
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