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 costs of producing candy canes by $0.05.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.

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The Answer of 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 costs of producing candy canes by $0.05.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.

Suppose That the Market for Candy Canes Operates Under Conditions