There are 1000 people living in a small seaside village; 250 of them are potato farmers and 250 are fishermen. The people in the village enjoy a balanced diet of fish and chips. However, a resident vegetarian has convinced people to eat more potatoes and the demand for potatoes has risen. Due to the increased demand, many fishermen have sold their fishing businesses and become potato farmers; there are only five fishermen left with all the fishing equipment. The remaining fishermen are also thinking about becoming potato farmers. An economist has been observing the situation and advises the five fishermen not to become potato farmers but rather to form a single fishing firm, she tells them that they will thank her later.Given your understanding about market structures, explain what the economist has observed and why she is making that specific recommendation to the fishermen.

There are 1000 people living in a small seaside village; 250 of them are potato farmers and 250 are fishermen. The people in the village enjoy a balanced diet of fish and chips. However, a resident vegetarian has convinced people to eat more potatoes and the demand for potatoes has risen. Due to the increased demand, many fishermen have sold their fishing businesses and become potato farmers; there are only five fishermen left with all the fishing equipment. The remaining fishermen are also thinking about becoming potato farmers. An economist has been observing the situation and advises the five fishermen not to become potato farmers but rather to form a single fishing firm, she tells them that they will thank her later.Given your understanding about market structures, explain what the economist has observed and why she is making that specific recommendation to the fishermen.

Don't hesitate - Save time and Excel

Are you overwhelmed by an intense schedule and facing difficulties completing this assignment? We at GrandHomework know how to assist students in the most effective and cheap way possible. To be sure of this, place an order and enjoy the best grades that you deserve!

Post Homework
Top