Question
10. Suppose the current market price of corn is $ 3.08 per bushel. Your firm has a technology that can convert 1 bushel of corn
10. Suppose the current market price of corn is $ 3.08 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3 gallons of ethanol. If the cost of conversion is $ 1.33 per bushel, at what market price of ethanol does conversion become attractive?
The price at which the conversion becomes attractive is $___ per gallon. (Round to the nearest cent.)
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
