Asked by Nurul Syairah on Jul 28, 2024
Verified
(Table: Soybean Cost) Use Table: Soybean Cost.What is the break-even price for this farmer?
A) $13.00
B) $13.50
C) $14.00
D) $14.50
Break-Even Price
The market price at which a firm earns zero profits.
Soybean Cost
The expense associated with growing, harvesting, and processing soybeans, often influenced by factors such as input prices, labor costs, and market demand.
Farmer
An individual engaged in agriculture, raising living organisms for food or raw materials, typically on a farm.
- Pinpoint the level of break-even and appraise the economic earnings for firms engaged in perfectly competitive arenas.
Verified Answer
BY
basant yadavJul 30, 2024
Final Answer :
B
Explanation :
The break-even price is the price at which the total revenue equals the total cost. In this case, the total cost at 2,000 bushels is $27,000. To find the break-even price, divide the total cost by the number of bushels: $27,000 ÷ 2,000 = $13.50. Therefore, the farmer needs to sell each bushel of soybeans at $13.50 to break even. Therefore, the best choice is B.
Learning Objectives
- Pinpoint the level of break-even and appraise the economic earnings for firms engaged in perfectly competitive arenas.