ECONOMIC EFFECTS OF A BAN AGAINST ANTIMICROBIAL DRUGS USED IN U.S. BEEF PRODUCTION
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Economic effects for three scenarios of antimicrobial drug use in livestock production -- a no-ban scenario and two levels of bans -- are examined through cost minimization and a partial equilibrium analysis. Results indicate that regulating antimicrobial drug use in livestock production would increase per-unit costs of producers previously using drugs and reduce beef supplies in the short run, reducing consumer surplus. Producers not previously using drugs would benefit from short-run price increases.
