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Perfect Competition: The Case of Potato Industry

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Subject: Economics
Due on: 09/15/2019
Posted On: 09/17/2019 08:52 AM
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Perfect Competition: The Case of Potato Industry

After reading the assigned chapters and the relevant articles for this week's discussion forum, discuss how the facts in the potato industry case (article links below) illustrate the lack of control over prices by individual potato producers in a competitive market. Also, discuss the response to high prices predicted by the model of perfect competition and the attempts by producers in a competitive market to gain control over price. Check recent business publications to find out how successful the United Potato Growers of America cooperative has been in recent times.

Main Article:

https://www.nytimes.com/1997/04/12/business/competitive-forces-threaten-to-knock-idaho-from-top.html

https://www.rd.usda.gov/files/CoopMag-mar05.pdf (only page 4-7 on the potato industry)

https://www.hcn.org/issues/352/17171

http://www.competitioneconomics.com/wp-content/uploads/2017/03/Williams-Zhao-Williams-The-OPEC-of-potatoes-2017.pdf

You may use these suggested readings and/or an outside credible source (such as the Wall Street Journal or other business publications)

Suggested articles:

  • Updated Potato Settlement Doesn't Include AWG.
  • Potato Growers, Associated Wholesale Grocers, Settle Lawsuit for $25 Million.
  • We Must All Hang Together.

The Packer. (2015, June 22). Updated: Potato settlement doesn't include AWG [Article]. Retrieved from https://www.thepacker.com/article/updated-potato-settlement-doesnt-include-awg (Links to an external site.)Links to an external site.

PotatoPro.com. (2015, June 19). Potato growers, associated wholesale grocers, settle lawsuit for $25 million [Article]. Retrieved from https://www.potatopro.com/news/2015/potato-growers-associated-wholesale-grocers-settle-lawsuit-25-million .

Shahan, B. (2018, April 18). We must all hang together [Article]. Retrieved from http://www.unitedpotatousa.com/publications_and_news/ (Links to an external site.)Links to an external site.

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Perfect Competition: The Case of Potato Industry

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