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    Sheena Merchant
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    Laya runs a tea plantation in Assam, the largest tea producing state in India. While she previously increased supply even at low prices to generate employment, she now reduces supply when coffee prices peak to maximize profits. To later increase supply when coffee prices rise, she purchases new machinery for Rs. 100,000.

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    Laya runs a tea plantation in Assam, the largest tea producing state in India. While she previously increased supply even at low prices to generate employment, she now reduces supply when coffee prices peak to maximize profits. To later increase supply when coffee prices rise, she purchases new machinery for Rs. 100,000.

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    © All Rights Reserved
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    4 views1 page

    Case Study

    Uploaded by

    Sheena Merchant
    Laya runs a tea plantation in Assam, the largest tea producing state in India. While she previously increased supply even at low prices to generate employment, she now reduces supply when coffee prices peak to maximize profits. To later increase supply when coffee prices rise, she purchases new machinery for Rs. 100,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Case Study

    Assam is the largest tea-producing state in India.There are several


    Tea plantations in the state. Laya is a producer of tea leaves,
    among many others in the region. Her goal is to generate
    employment. Thus, she tends to create higher supply even when
    the prices are low.
    Although now, As she noticed the price of Coffee has increased
    from 20 rupees to 30 rupees.
    She reduces her supply now as to maximize her profit, when coffee
    prices reaches its peak. She will increase her supply. To increase
    her supply, she purchases machinery of rupees 1,00,000.

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