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Market for cage-free eggs is perfectly competitive

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Assume the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?

  • The equilibrium price is likely to remain unchanged and profits are likely to increase
  • The equilibrium price is likely to decrease and profits are likely to decrease
  • The equilibrium price is likely to increase and profits are likely to remain unchanged
  • The equilibrium price is likely to increase and profits are likely to increase

Reference no: EM131258480

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