Question

Nature’s Crunch is currently the only certified organic produce grower in a region that produces lots of non-organic produce alternatives. Which of the following scenarios would increase Nature’s Crunch’s profits?

Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.

check all that apply
A tomato blight affecting chemically treated plants.unanswered
An increase in the cost of chemical pesticides.unanswered
A new report about the environmental dangers of chemically treated plants.unanswered
Income tax cuts for all consumers.unanswered
A new report showing that there is no nutritional difference between organic and non-organic produce.

Answer 1

Nature’s Crunch could see an increase in profits from a blight on chemically treated plants, higher pesticide costs, reports of environmental dangers from such chemicals, and consumer income tax cuts, which may boost demand for their organic produce.

Step-by-step explanation:

The scenarios that would increase Nature’s Crunch’s profits from being the only certified organic produce grower in a region with many non-organic alternatives are as follows:

• A tomato blight affecting chemically treated plants would reduce the supply of non-organic produce, making organic produce from Nature’s Crunch more desirable.
• An increase in the cost of chemical pesticides would raise the production costs for non-organic competitors, potentially increasing the price of non-organic produce and making organic options more competitively priced.
• A new report about the environmental dangers of chemically treated plants may sway public opinion further towards organic produce, increasing demand for Nature’s Crunch products.
• Income tax cuts for all consumers would likely increase disposable income, allowing more people to afford the typically higher-priced organic produce.

However, a new report showing that there is no nutritional difference between organic and non-organic produce is less likely to impact Nature’s Crunch's profits positively as it addresses nutrition rather than the organic quality that their customers value.