The article presents a simple theoretical framework that can be used to explain conduct and performance of agricultural industries and seller market power in these industries. The framework components include a linear inverse demand function, a constant marginal cost function, and a set of measures of costs, revenue, and profit. The theoretical framework is consistent with agricultural supply and price cycle, and the decision-making process of agricultural producers. The theoretical framework is used to develop applications for the U.S. peanut and potato industries represented by two problem sets provided in the teaching note, which also includes four sets of assessment questions. The article discusses implementation and practical applications of the proposed teaching activity. The target audience includes students taking undergraduate courses in agricultural economics and agribusiness programs as well as extension and outreach audiences.