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 $35 per ton in the short-run the switchgrass farmer will:

Question

Quizplus · Accepted Answer

At a price of $35 per ton, which is below the minimum average variable cost of $40 per ton, the farmer will shut down in the short run to minimize losses.

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