Kroger, the​ country's leading​ grocery-only chain, added a line of private label organic and natural foods call Simple Truth to its stores. If​ you've priced organic​ foods, you know they are more...

Kroger, the​ country's leading​ grocery-only chain, added a line of private label organic and natural foods call Simple Truth to its stores. If​ you've priced organic​ foods, you know they are more expensive. For​ example, a dozen conventionally farmed​ Grade-A eggs at Kroger costs consumers $2.3​, whereas Simple Truth eggs are priced at $4.8 per dozen. One study found​ that, overall, the average price of organic foods is 85 percent more than that of conventional foods.​ However, if prices get too​ high, consumers will not purchase the organic options. One element of sustainability is organic​ farming, which costs much more than conventional​ farming, and those higher costs are passed on to consumers. Suppose that a conventional egg​ farmer's average fixed costs per year for​ conventionally-farmed eggs are​ $1 million per​ year, but an organic egg​ farmer's fixed costs are