Examlex

Solved

A Recent Explosion in the Demand for (And Price Of)organically

question 95

Essay

A recent explosion in the demand for (and price of)organically produced foods has caused many farmers to convert from traditional farming methods to higher-cost organic farming methods.Explain what has happened to the opportunity cost of traditional farming and why.Based on your explanation,does it make sense to see so many farmers moving to organic farming? Explain.


Definitions:

Extra Total Utility

The additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.

Current Consumption

The amount of goods, services, energy, or natural resources being used by consumers or industries at the present time.

Marginal Utility

The additional satisfaction or benefit obtained from consuming one more unit of a good or service.

Hypothetical Consumer

A theoretical or imagined individual used in economic models to predict behaviors in market scenarios.

Related Questions