Keith Is a Perfectly Competitive Carnation Grower

question 166

Multiple Choice

Keith is a perfectly competitive carnation grower.The market price is $2 per dozen carnations.Keith's average total cost to grow carnations is $2.50 per dozen.In the long run,Keith will

• A) raise his price to more than $2.50 per dozen carnations.
• B) raise his price to $2.50 per dozen carnations.
• C) exit the industry if the price and his costs do not change.
• D) incur an economic loss.
• E) continue to make an economic profit.

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Definitions:

Oedipus Conflict

A psychoanalytic theory proposed by Freud highlighting a child's unconscious sexual desire for the opposite-sex parent and jealousy towards the same-sex parent.

Moral Competence

The ability to make decisions based on ethical principles and to act in accordance with one's moral values.

Moral Performance

The actual behavior of an individual in ethical or moral situations, reflecting their moral principles.

Specific Situations

Particular or distinct scenarios, conditions, or cases that are clearly identified or defined.