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:

Acquired Aplastic Anemia

A condition where the body stops producing enough new blood cells due to damage to the bone marrow, often caused by exposure to chemicals, drugs, radiation, or certain diseases.

Congenital Defect

A physical or biochemical problem that is present at birth and may be caused by genetic factors or by prenatal events that are not genetic.

Iron Dextran

A medication used to treat iron deficiencies and anemia, administered intravenously or intramuscularly.

Iron-Deficiency Anemia

A form of anemia caused by a lack of sufficient iron to produce healthy red blood cells.