skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

It is 2017, and you work for a prestigious management consultant firm whose client is a large agribusiness company that is considering acquiring an ownership stake in several U.S. yellow perch farming operations. (The yellow perch is a fresh fish found in the United States and raised commercially for sale as food.) As a member of the consulting team working on this project, you have been assigned the task of understanding why the U.S. farm-raised perch industry has evolved as it has over the last six years.
Between 2010 and 2013, the farm-raised yellow perch market was stable. However, in 2013 an unexpected exogenous shock occurred that affected prices and quantities in the market. You dont know much about the details of the industry, and since the industry is not covered extensively in the press, it is hard to find articles on the Web about what happened to the industry. From talking to the client, you learn that the shock might have had something to do with either a change in the market demand for yellow perch or a change in the price of corn (which affects the price of perch feed). But you do not know for sure, nor do you know whether the shock was a permanent change or merely a temporary one. However, you do have data (obtained from the client), shown in the accompanying table, on yellow perch prices, market demand, quantity supplied, and the number of producers. The data pertain to 20102013, 2014 (within one year of the shock), and 2016 (three years after the shock). You also know (from the client) that yellow perch farms are virtually identical, with U-shaped long-run average cost curves. You also learn from the client that the minimum efficient scale of a typical yellow perch farm occurs at a rate of production of about 1,000 pounds per month (and this is unaffected by changes in the prices of key inputs such as feed or labor).
a) Based on the data in the table, what type of shock most likely explains the evolution of the yellow perch farming industry from 20102013 to 2016?

20102013

2014: within
6 months of
the shock

2016: 3 years
after shock

Market price of yellow perch

$3.00 per pound

$4.00 per pound

$3.00 per pound

Total quantity yellow perch
demanded in the United States

100,000 pounds
per month

120,000 pounds
per month

150,000 pounds

Quantity of yellow perch supplied
by a typical yellow perch farm

1,000 pounds
per month

1,200 pounds
per month

1,000 pounds
per month

Number of active yellow perch farms

100

100

150

b) How would your answer change if the number of active yellow perch farms in 2016 was 100?
C) How would your answer change if the data in the
table looked like this?

20102013

2014: within
6 months of
the shock

2016: 3 years
after shock

Market price of yellow perch

$3.00 per pound

$3.50 per pound

$4.00 per pound

Total quantity yellow perch
demanded in the United States

100,000 pounds per month

90,000 pounds

80,000 pounds

Quantity of yellow perch supplied
by a typical yellow perch farm

1,000 pounds per month

900 pounds
per month

1,000 pounds
per month

Number of active yellow perch farms

100

100

80
Solution…

ttached

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top