In the mid-1990s, cattle ranchers in the United States kept raising cattle even though prices were at a ten-year low and below average total cost. What is the likely explanation for this?
A) The ranchers were hoping to receive government subsidies.
B) The exit costs were too high.
C) Continuing to operate resulted in smaller losses than would have been incurred by shutting down.
D) Cattle is an important source of protein and its production is essential for the United States.
C
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In the short run, when the central bank increases the quantity of money, what happens to real balances?
a. They do not change, since prices will rise by the same proportion. b. They will fall, since prices will rise by a greater proportion. c. They will rise, since prices overall will fall. d. They will rise, since prices will not change in the short run.
"Discouraged workers" are officially considered ________ the labor force and ________
A) in, unemployed B) in, not unemployed C) not in, unemployed D) not in, not unemployed