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:

Question

Quizplus · Accepted Answer

In the short run, if the price is above the average variable cost ($40) but below the average total cost ($55), the farmer will continue to operate but will incur losses.

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