Multiple Choice
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. Based on the information given, we can conclude that a typical producer of candy canes is experiencing:
A) diminishing marginal returns to its variable factors of production.
B) increasing marginal returns to its variable factors of production.
C) negative economic profits
D) It is not possible to answer based on the information given.
Correct Answer:
Verified
Correct Answer:
Verified
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