The Basic Economics of Organic versus Non-Organic Foods

Personally, I am fortunate to live in an area that has a fairly wide array of organic foods. There is a healthy mix of large supermarkets and small, independent grocers that sell organic foods. Using the Mayo Clinic as a reference, I have developed the following opinion on organic foods that takes into account the financial aspects as well as the health ramifications of eating or not eating organic foods. The basic economics of Organic versus Non-Organic foods are as follows: Non-Organic These foods are grown using fertilizers, herbicides and pesticide use, and may or may not be a genetically altered plant that grows at a rate many times that of a regular plant. The potato is one such example. Because of the fast growing rates and high crop yield due to the use of pesticides and other unnatural components, this allows the firm to sell the plant at low costs to maximize on their marginal cost (the benefit of producing or selling one more unit of output). If a firm in a completely fair competitive market desires to make money, they will sell more units at a lower cost, so long as the number of units doesnt incur a negative marginal cost. Organic No additives, no preservatives; nothing is added to these products that is not naturally present in their growing process. This is what makes organic so expensive. Without the aid of GMOs, herbicides, pesticides and preservatives added later, these food products have lower yield rates, lower shelf life, longer growth rate,Show MoreRelatedOrganic Products4246 Words   |  17 PagesDefinition of Ecopreneurship The term â€Å"ecopreneur† is derived from two terms which are â€Å"entrepreneur† and â€Å"ecology.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An entrepreneur is a person who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods and who accepts the risks associated with them. 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Organic Food market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....13 09. How can we market Organic Products?.......Read MoreEffects of Globalization Essay example1015 Words   |  5 PagesEffects of Globalization on Non-Western Cultures Globalization of Non-Western countries have had great implications to their societies whether it is a positive or a negative effect, fortunately most of the effects are benefiting the population that it is being targeted. I am going to reference two different areas on the map that has had the help of the United States in their transition to towards a more developed country. First we will discuss Africa namely Uganda and Ghana and with the helpRead MoreThailand : Thailand The Asian Pacific Area2361 Words   |  10 Pagesdistribution to our larger customers in that region of the world. 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