assume the market for beef is perfectly competitive. Beef producers are currentl

Question

assume the market for beef is perfectly competitive. Beef producers are currently earning a zero economic profit. if consumers switch to beef from chicken, which of the following is most likely to occur? a) beef producers will now incur economic profits in both short run and long run b) beef producers will incur economic profits in the short run. some producers will enter the industry until all firms in the industry are earning a zero economic profit c) beef producers will incur economic profits in the short run. some producers will enter the industry as long as all firms in the industry are earning an economic profit d) beef producers will now earn economic losses in the short run and there will be no additional adjustments in the long run.

Explanation / Answer

b) beef producers will incur economic profits in the short run. some producers will enter the industry until all firms in the industry are earning a zero economic profit

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