Answer to Question 1
As people become more aware of the availability of organically grown products, the more they buy them. As the demand increases, the production also increases. This is the economic principle known as supply and demand. When the demand increases, usually this means that larger quantities are produced and competition among producers expands. The withdrawal of many conventional pesticides from the market has also helped lower the cost of organically grown products, because the alternatives are often so expensive that producers choose instead to use organic techniques.
Answer to Question 2
The six forces driving growth in the organic agriculture industry, according to the USDA, are:
1 . Environmental awareness
2 . The relationship between diet and health
3 . The declining costs of organic food production
4 . The mainstreaming of organic consumers, products, and retailers
5 . Worldwide harmonization of organic standards
6 . Capital investments from the financial community
Diagram of the food chain
Typical Startup Cost Categories
Organic-rich marine clays
Food Sources of the Essential Fatty Acids Many oils and nuts
Go Green: Tips for Making More Sustainable Food Choices
A company that makes cell phones has the following cost structure. They have fixed costs of ...