Consumers, Producers, and the Efficiency of Markets (pay attention to the last section, Market Failure).

Introduce the topic. Define productive efficiency, allocative efficiency, and market failure.

1. In Chapter 7, we will learn about allocative efficiency. Discuss whether the current food system is efficient from the perspective of society. In the market for factory-farmed products, compare the current equilibrium with a socially optimal equilibrium. What is the socially optimal demand and supply? Your answer should be illustrated with a demand and supply graph. Mention the concepts of consumer and producer surplus and deadweight loss.

2. You may provide a similar analysis for local foods. Your conclusion: 1. How will your business improve the efficiency (allocative efficiency) of the food system?

2. Why do you think the local community and investors may support your business plan? Do not simply summarize various sources of information. Outline your original thoughts. List the Sources you used.

- Externalities

Introduce the topic.

Q1: List the negative external effects of industrial food production. Support your answer with a personal experience. Provide examples. Refer to external sources of information. Interview local residents if they are aware of the negative external effects of factory farming. You may use AI to generate interview questions. 12 ECO 202 Project I Weekly Activities Additional Sources: Animal Agriculture and Climate Change | This video may change your life, for good! The Sustainability Secret The Truth Behind "Humane" Labels Wasted - How America Is Losing Up to 40 Percent of Its Food from Farm to Fork to Landfill (PDF)

Q2: Discuss inefficiencies of our current food system as they were revealed by Covid-19. Covid-19 and the US Food System

Q3: As part of Chapter 10, we will explore one external effect, food loss and food waste. Find out how much food is wasted and lost in our current food system. The following is for your consideration: Hunger in America is skyrocketing. Economic downturn decreased household incomes, limiting families' ability to meet their dietary needs, and "the scope and speed of this downturn are without modern precedent," according to Fed Chair Jerome Powell. At the same time, we are observing shockingly high rates of food loss. (Supply chain broke). A farm-to-fork food supply chain is broken. Interesting facts: Illinois landfill capacities report. Let us pick one landfill, Advanced Disposal Services Zion Landfill, which received 2,203 tons per day in 2013. "Fourteen million tons of waste is landfilled in Illinois every year. Food waste accounts for almost 20 percent of those 14 million tons, which is more than any other single waste stream found in landfills. When food waste decomposes, it produces methane, a powerful greenhouse gas that is 25 times more harmful than carbon dioxide."

Q4: Present local area statistics on food loss and waste, indicating places that generate the most waste. 13 ECO 202 Project I Weekly Activities

Q5: Find out how supermarkets and restaurants in the local area you study manage food waste. What incentives to recycle, donate, and compost food scraps do they have?

Q6: How did Covid-19 affect food loss? Food Waste and Covid-19: Impacts along the Supply Chain farmdoc daily

Q7: Evaluate possible solutions to the negative production externality associated with factory farming. Compare the effectiveness of government interventions in addressing externalities with the outcomes that arise from free market mechanisms.See this table: Solutions to the externalities Solution Pros Cons

Q8: Can you profit from waste (turn your trash into cash)? Upcycling Food Waste into Chicken Feed

Your conclusion: 1. How will your business address the problem of the negative external effects -- food loss and food waste? (Example: Freshpick, Irv & Shelly's Fresh Picks: Freshpicks, simplifies the supply chain and reduces food loss, or you may donate food, or purchase composters to recover food loss). Describe your marginal benefits and costs from the actions you propose to discuss your incentives to reduce food waste. 14 ECO 202 Project I Weekly Activities 2. Why do you think the local community and investors may support your business plan? Do not summarize various sources of information. Outline your original thoughts. Use the concepts you learned. Avoid normative analysis.