Wharton 2017 casebook math!

Question

Hi all, below is the chart from the Wharton casebook 2017- Case 10 mining. We are supposed to find out the price for Iron Ore from this chart. But how? Based on the answer they provided, there seems to be a curve above this chart. Does anyone have the right version of the book that includes the curve. Otherwise, I really don't know how to find out the price.

Answer 1

Hi there,

I would be happy to share my thoughts on it:

It seems like the exhibit is missing the line chart that was mentioned, indeed.
Unfortunately, I haven't seen any other version of the Wharton 2017 case book that includes the line chart mentioned either. As such, I would advise you to skip this question or even the case study altogether.

If you would like a more detailed discussion on how to best prepare for your upcoming consulting interviews, please don't hesitate to contact me directly.

Best,

Hagen

Answer 2

Hi,

I took a quick look at the case book. Yes it appears the graph in the book is missing a horizontal line which should indicate the price.

This is a commodity industry and what you are seeing is a marginal cost curve. The horizontal line indicates what the market price is (whether current or predicted).

You have 2 options:

Skip this question
Get someone to case you to edit this graph and draw a line (the case book also has the answer / explanation of how the line that is missing looks like)

All the best!

Answer 3

Hi there,

Agreed with the others. It's quite common a case has a mistake or two!

Answer 4

Hello,

Agree with the other coaches here!

Best,

Rushabh