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:

Predicting Dangerousness

The process of assessing the likelihood that an individual will behave in a way that poses a threat to the safety of others or themselves.

Short-term Risks

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Long-term Violence

Sustained acts of aggression or assault that occur over an extended period, often resulting in physical harm, psychological trauma, or social disruption.

Two-physician Certificates

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