Recall the Application About the Break-Even Price for Growing Switchgrass

question 143

Multiple Choice

Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s) .
-Recall the Application. If the minimum of average total cost for switchgrass farmers is $55 per ton and the minimum of average variable costs is $40 per ton, then at a price of $50 per ton in the short-run the switchgrass farmer will:

• A)shut down, that is bring no switchgrass to market.
• B)operate losing money.
• C)make a zero economic profit.
• D)make a positive economic profit.

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