Monsanto

Market theories provide the foundation for assessing the effect of GMOs and supply and demand. The conditions of supply and demand are intertwined with the type of market in which a company competes. The concept of perfect competition is important to understanding the forces that drive supply and demand in a free market economy. The term perfect competition can be conceived as an ideal market that possesses the following attributes: 1) suppliers who produce identical products, 2) consumers in demand of the same product, 3) a free exchange between buyers and sellers, 4) no existing entrance barriers preventing new suppliers from entering the market (Asmundson, 2010). The perfectly competitive market requires a free exchange between buyers and sellers. Thus, it is also a condition that buyers have full disclosure over any information that effects their decision to purchase a product (Asmundson, 2010).

The concept of perfect competition is critical because it enables an undistorted understanding of supply and demand. In the

Lead GMO seed producer Monsanto Company is reflected among the top four companies in the industry. The actions taken by Monsanto generally benefit producers and suppliers that distribute the company’s GMO products. The introduction of Monsanto GMO seeds has resulted in a price decrease for major agricultural goods (Phillips, 2014). Further, the company has taken action to increase entrance barriers in the agricultural and GMO markets. These actions included suing farmers for infringing upon seed patents when the seeds from a GM plant contaminate the lands of nearby farmers and adopting a competitive pricing strategy that undercuts the prices of non-GMO producers (Phillips, 2014). The barriers developed by Monsanto and biotech firms reduce the opportunity for market entrants to successfully effect supply and