A Worldwide Hops (A Flowers Used in Brewing) Shortage Made

question 345

Multiple Choice

A worldwide hops (a flowers used in brewing) shortage made stouts, ales and other specialty microbrews more pricy in 2008. Gayle Goshie, a hops farmer, blamed overproduction for hops' previously cheap place on the agricultural market. The glut pushed many hop farmers out business, which gradually helped hop prices recover. Suppose farming hops is a perfectly competitive market. Why would some hop farmers go out of business?

• A) because the price of hops was below the minimum of average fixed cost
• B) because the price of hops was lower than the minimum of average variable cost
• C) because the price of hops was higher than the minimum of average variable cost
• D) because the price of hops was lower than the minimum of average total cost

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Definitions:

Fahrenheit

A scale of temperature on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Celsius

A scale and unit of measurement for temperature where 0° represents the freezing point of water, and 100° represents the boiling point at sea level.

Body Mass Index

A numerical value derived from a person’s weight and height, used to classify underweight, normal weight, overweight, and obesity.

BMI

Body Mass Index, a measure calculated from a person's weight and height, used to classify underweight, normal weight, overweight, or obesity.