Jason has a fixed cost of $2 and a projected variable cost of $.50 per bag of cabbage. The best price he can contract for a week before planting time is $2.25 a bag and it is too late to shift to another enterprise. Unfortunately, the projected price over the next few years is no better. What is your advise to Jason?

Jason has a fixed cost of $2 and a projected variable cost of $.50 per bag of cabbage. The best price he can contract for a week before planting time is $2.25 a bag and it is too late to shift to another enterprise. Unfortunately, the projected price over the next few years is no better. What is your advise to Jason?



Answer: Produce this year -- look for another crop for next season.


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