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ECON-102-Fall-2012-Exam-3-Version_A_and_C

# Lilly is the price taking owner of an apple orchard

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Unformatted text preview: reater than \$2 per pound. but less than \$3.25 per pound. d. More information is needed to answer this question. 20. Suppose that the market for candy canes operates under conditions of perfect competition, and that it is initially in long- run equilibrium. Now suppose that the price of sugar rises (sugar is an input needed to produce candy canes). Based on the information given, we can conclude that in the short run a typical producer of candy canes will be making: a. an economic profit. b. zero economic profit. c. negative economic profits. d. The answer is impossible to determine based on the information given. 21. The market for chicken is in long- run equilibrium at a price of \$5 per pound. If the price increased to \$8.00/pound, and the long- run supply curve is horizontal, then when long- run equilibrium is reestablished the price will be: a. \$8 per pound. b. \$5 per pound. c. greater than \$5 per pound. but less than \$8 per pound. d. More information is needed to answer this question. 6 ECON 102 NAME: _______________________ FALL 2012 EXAM- 3 VERSION A 22. Suppose that the market for candy canes operates under conditions of perfect competition, and that it is initially in long- run equilibrium. Now suppose that the price of sugar goes down (sugar is an input needed to produce candy...
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