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Reply #526: You're assuming that economies of scale hold true for the agriculture market [View All]

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Hippo_Tron Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-25-07 08:44 AM
Response to Reply #494
526. You're assuming that economies of scale hold true for the agriculture market
Some disagree with that...

http://www.oxfamamerica.org/whatwedo/where_we_work/united_states/news_publications/food_farm/art2570.html

Also, increased demand doesn't lower prices it raises them. If somehow the increased demand drives the agriculture industry to find ways to produce cheaper or more efficiently then yes prices will go down. But that is particularly unlikely given that the government subsidizes agriculture meaning that inefficient producers can avoid being destruction by market forces.
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