AGR403: Put yourself in a position of an investor who would like to invest in the agriculture industry. Make a detailed analysis: Basic Agricultural Economics Assignment, UiTM, Malaysia

University Universiti Teknologi MARA (UiTM)
Subject AGR403: Basic Agricultural Economics

Put yourself in a position of an investor who would like to invest in the agriculture industry. Make a detailed analysis of the local market with a detailed description of the current situation and your expectation for future developments in that industry. The analysis should be the basis for your future strategic decision to enter the market, operate and maximize the profit.

You will have to explain how you will enter the market (you will establish a new company, you will buy an existing one, or you will make a joint venture) and how you will target your consumers. Furthermore, you will have to explain the market structure (is it a perfect competition, monopoly, monopolistic, or oligopoly). Your analysis should include the cost structure of your company, including:

  • Variable cost
  • Fixed cost
  • Opportunity cost

In your project, describe your pricing (are you a price taker or a price maker) and quantity (with graph) of your profit maximizing point and relate it to policy. Explain the expected revenues, your profit expectations, and your idea of how to maximize the profit. Have a separate paragraph on how you plan to grow in the future and the short-term and long-term decisions of market exit. You must also explain the advantages and disadvantages of expanding your business globally.

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