Organic food

Describe either a typical consumer or a typical producer in terms of consumer or producer theory. That is, write down a utility function or a production function and defend your choice of function. Your functions will not capture the exact reality of the market but you should argue that they are a good approximation and point out what factors you have left out. I will discuss the idea of approximation by models in class. In some cases it may make sense to have different classes of consumers/producers; e.g. in the market for air travel, leisure and business travelers might have quite different preferences. The purpose of this
What is the market structure (Monopoly? Oligopoly? Monopolistic competition? Perfect competition?) I will discuss how we might distinguish between these in real life markets.
Are there closely related substitutes and/or complements? If they are important you may want to include them as goods in your consumers’ utility functions. Very close substitutes may be considered part of the same market; keep this in mind when defining the scope of your market.
What are the important factors affecting supply and demand in your market? For example, in the air travel market important factors affecting supply include the cost of purchasing and maintaining aircraft, labor costs, fuel costs, available aircraft technology and the availability of `slots’ at airports.