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Health, 23.03.2020 18:02, shellxavier1
A study sponsored by the Food Consumer Safety Board found that consumption of irradiated tomatoes increased the health of laboratory rats. As a result of national press coverage of the report, the demand for irradiated tomatoes increased dramatically. Organic farmers were able to switch from organic production of tomatoes to irradiated production with no additional cost. Assume that the tomato market satisfies all of the assumptions of perfect competition. As a result of the increase in the demand for tomatoes, we would predict that in the short run that the:
A. production of tomatoes would be affected at efficient scale.
B. total cost for existing irradiated tomato producers must rise
C. number of firms in the market would fall as prices fall and firms exit the market.
D, price of tomatoes would rise.
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