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 $40 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.
Answer: A
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Individuals who specialize in activities that lower transaction costs are
A) consumers. B) producers. C) bureaucrats. D) middlemen.
For those in the lowest tax bracket, each dollar tax cut increases disposable income by about $1.33
a. True b. False Indicate whether the statement is true or false
Marginal decision-making is best demonstrated by: a. choosing to spend one more hour studying economics because the improvement in scores on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made of animal skin or fur
c. acquiring the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
The Clayton Act of 1914 allows those harmed by illegal arrangements to restrain trade to
a. sue for up to two times the damages they incurred. b. sue for up to three times the damages they incurred. c. sue for up to four times the damages they incurred. d. sue for damages, but only for the actual amount of damages they incurred.