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 total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $30 per ton,then at a price of $35 per ton in the short run the switchgrass farmer will

Question

Quizplus · Accepted Answer

Since the price of $35 per ton is above the minimum average variable cost ($30 per ton) but below the minimum average total cost ($55 per ton), the switchgrass farmer will continue to operate in the short run to cover some of the fixed costs, even though they will incur a loss.

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