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 $40 per ton, then at a price of $35 per ton in the short run the switchgrass farmer will:
A. shut down, that is, bring no switchgrass to market.
B. operate and lose money.
C. make a zero economic profit.
D. make a positive economic profit.
Answer: A
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A call option is said to be "in the money" if
A) it is written on a Treasury bill or other money-market asset. B) it has increased in price since it was first written. C) the price of the underlying asset is currently greater than the strike price. D) the price of the underlying asset is currently greater than the strike price plus the option premium.
The market for cigarettes likely has a:
A. highly elastic demand. B. slightly elastic demand. C. highly inelastic demand. D. slightly inelastic demand.
At point D, the firm is 
A. making money. B. losing money. C. breaking even. D. maximizing its profit.
Proponents of economic growth say that pollution:
A. declines as a country moves from agriculture to industry. B. is an inevitable by-product of growth. C. occurs not because of growth, but because common properties are treated as free goods. D. is detrimental to economic growth.