Asked by Rebekah Hilton on Jun 19, 2024
Verified
Suppose the beef industry is perfectly competitive and the demand for beef rises.As long as the demand does not subsequently fall,beef producers can expect to earn economic profits in both the short run and the long run.
Economic Profits
The difference between a firm's total revenues and its total economic costs, where economic costs include both explicit and implicit costs.
Perfectly Competitive
In a perfectly competitive market, there are many buyers and sellers, the products are homogenous, and no single entity can influence the market price.
Demand Rises
Occurs when there is an increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.
- Describe how changes in demand affect the market in the short run and long run.
Verified Answer
Learning Objectives
- Describe how changes in demand affect the market in the short run and long run.
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