Suppose That the Market for Candy Canes Operates Under Conditions

question 227

Multiple Choice

Suppose that the market for candy canes operates under conditions of perfect competition,that it is initially in long-run equilibrium,that the price of each candy cane is $0.10,and that the market demand curve is downward sloping.The price of sugar rises,increasing the marginal and average total cost of producing candy canes by $0.05;there are no other changes in production costs.In the long run,we will observe:

• A)firms leaving the industry.
• B)firms entering the industry.
• C)some firms entering and some firms leaving.
• D)neither entry to nor exit from the industry.

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Definitions:

Moral Realism

The philosophical viewpoint asserting that ethical statements refer to objective features of the world, which are independent of human opinion.

Moral Development

The process by which individuals learn to distinguish right from wrong, making ethical decisions and understanding societal norms.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child psychology, especially his theory of cognitive development that describes how children develop intellectual abilities.

Heinz Dilemmas

A set of moral dilemmas used in psychological studies to investigate moral reasoning and decision-making.