The Basic Economics of Organic versus Non-Organic Foods

666 WordsFeb 19, 20183 Pages
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 doesn't 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 GMO's, herbicides, pesticides and preservatives added later, these food products have lower yield rates, lower shelf life, longer growth rate,

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