Friday, April 1, 2022

Harvested and Ready to Export, Bananas Bound for Russia Have Nowhere to Go

The WSJ (March 2022) reports that an embargo of bananas to Russis and gridlock at ports has created a "glut" of bananas. "Consider this quote: "With a glut on the market that has sharply lowered prices, many farmers are leaving bananas to rot in the fields—low prices don’t cover the cost of production." Which cost is price below, average variable cost or average total cost?

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