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
Correct Answer:
Verified
Q378: In a perfectly competitive market, a permanent
Q379: In the long run, perfectly competitive firms
Q380: In a perfectly competitive market, technological advances
Q381: In the long-run equilibrium, perfectly competitive firms
Q382: Fresno County, California is the largest agricultural
Q384: Which of the following four firms would
Q385: A worldwide hops (a flowers used in
Q386: In the long-run equilibrium, perfectly competitive firms
Q387: If the donut industry is perfectly competitive
Q388: Fresno County, California is the largest agricultural
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents