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Business, 20.03.2020 22:54 liv467

Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that 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. Based on the information given, we can conclude that in the long run we will observe:1. firms leaving the industry.2. firms entering the industry.3. some firms entering and some firms leaving.4. neither entry nor exit from the industry

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Suppose that the market for candy canes operates under conditions of perfect competition, that it is...
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