AGBU 2385 EXAM2

List two implication of Decentralization

-Quality control

-Less market Info

Explain why Farmers are price-takers and Marketing Firms are price-setters. Give two examples where you have seen this in the BBC videos, use a different video for each on

Marketing firms are price-setter because they are the middleman, like how roger was able to sell the apples in India and in London he was able to sell more fish because he had a middleman system. Farmer are price-takers because they can take what they get, like in New York roger had eels that no one really liked, but then was able to sell to a person who agreed with the price; in Mexico roger had to take Cesar offer because he didn’t even make profit.

Vertical integration is demonstrated by centralizing vertical related market functions and decisions either by contract or woreship

True

Why does competition play a number of important roles in our market economy. Give two examples

It plays a number of important roles in taming the rivalry & the profit-seeking of the marketplace in order that will serve the public interest. Product & Brand competition

A production contract is somewhat similar to an employee-employer relationship

True

Merchant wholesalers buy, sell and store grocery product and nothing else in the distribution system

False

Example institutional competition, give one example

Rival between competing market institutions and a example is Grocery stores

List three reasons for integration in the food industry

-increase supply

-quality

-profits

Example the concepts of the Marketing Mix

-Price: list

-Product: quality

-Promotion: advertising
-Place: distribution channels

Functional competition is when two or more firms vie to determine who will perform a particular marketing function

True

The task of food processors and retailers is to provide consumers with the right foods, at the right time and place, keeping in mind price and profit.

False

List three out of the five conditions that are said to be perfectly competition in a market if it satisfies what?

-Large numbers of buyer & sellers

-No product differentiation

-Firms are free to enter or leave the market without constraints.

Explain in detail what the three methods of vertically coordinating are that can be seen in the food system

Open markets is buying and selling in open market with price determine at time of trade. Contract is farm suppliers and ranchers going into a contract. Vertical integration is one entity controls everything from the input sector all the was down to the consumer.

Price discovery describes a situation in which all buyers and sellers are price takers or price negotiators

True

List and define two different Cooperatives according to the Powerpoint/Lecture.

-Purchasing cooperatives provides savings to farmers for their purchases

-Service cooperative provides members with improved service good like discounted Insurance

Cooperatives enable farmers to do collectively what they cannot do independently.

True

Explain the difference between the marketing mix and the marketing utilities

marketing mix is a combination of elements like product, price, place, and promotion, while marketing utilities refer to the value added to a product through its various forms, possession, time, and place.

Explain in detail Variable Price Merchandising and give an example.

changing the price depending on when, where, or how much people want something. Charging different prices for seasonal fruits or during peak demand times. Target vs. Walmart

List three marketing problems that were discussed in the lecture video and pp. Out of the three, give one solution a farmer could do to try and alleviate this to best of their abilities

List the three classes of functions

The micro view of marketing is that it only includes buying and selling

false

In detail, describe seasonal variability in production that a farmer may or can face