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

question 58

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 average variable cost for switchgrass farmers is $30 per ton and the current price is $35 per ton,in the long run the switchgrass farmer will

• A) exit the industry.
• B) operate and lose money.
• C) make a positive economic profit.
• D) make a zero economic profit.

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Definitions:

Dictate

To give orders or instructions with authority, often without considering others' opinions or desires.

Facilitate

To make an action or process easier by providing assistance or guidance.

Systems Dynamics

A method for comprehending the nonlinear dynamics of intricate systems over time through the use of stocks, flows, internal feedback mechanisms, and time delays.

Cyclical Causality

A concept in systems thinking where causes and effects create feedback loops that influence each other over time.