Perfectly competitive is in long-run equilibrium

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Assume that the egg industry is a perfectly competitive is in long-run equilibrium. Now suppose there is an increase in consumer tastes for eggs so that there is an increase in demand for eggs. Using a supply and demand and a typical firm diagram, illustrate and explain the impact of the market for eggs in the short run and the long run, showing the short-run equilibrium and how long-run equilibrium is reestablished if other firms in the egg industry enter the market in response to one egg companies short-run profits and the increase in demand for eggs by consumers.

Reference no: EM131392037

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