Source: https://www.npr.org/templates/story/story.php?storyId=100272802

1/ What were some problems thatthe dairy farmer Don Beckendorff facing?

.The credit crisis hit and bank called in his note on some new cows he bought when times were good.

.Drought killed his rye crop that he planned to use for cattle feed.

.Milk prices tumbled.

.An E. coli outbreak killed 60 of his cows.

2/ What was the price range to produce break-even profit (P=ATC) for Mr. Beckendorff?

$16 to $17.

$9.90 to $10.60.

$10 to $15.

$17 to $24.

3/ What was the shut-down price for Mr. Beckendorff?

$16.

$10.60.

$17.

$9.90.

4/ Using what you have learned in the module, what are the variable costs to dairy farmers?

Labor costs.

Raw material costs.

Cattle feed costs.

Utility costs.

5/ Using what you have learned in the module, what are the fixed costs to dairy farmers?

Lease and rent payments.

Labor costs.

Insurance.

Interest payments.

6/ Dairy farming would be most likely classified in which one of these market structures?

Perfect competition.

Monopoly.

Monopolistic competition.

Oligopoy.