real world cost data
Check Point: Real-World Cost Data
- Read: Go to the United States Department of Agriculture Economic Research Service: Commodity Costs and Returns: Recent Costs and Returns https://www.ers.usda.gov/data-products/commodity-costs-and-returns/commodity-costs-and-returns/#Recent%20Cost%20and%20Returns (Links to an external site.)
- Select corn from the Commodity checkbox and use the most recent data for the entire U.S.
- Post: your response to the following questions. Be careful! If you understand the definitions in this chapter you won’t be doing any computations.
- What are the average total variable cost, average total fixed cost, and average total cost of producing an acre of corn?
- Did the average corn grower earn a profit in that year? If so, how much per acre. If not, how much was the loss per acre?
- Should the average corn grower shut down? Why or why not?
- Refer to your textbook, describe (you will not be giving a numerical answer) the lowest price corn can fall to so that growers can continue to operate in the short run. In the long run.
