What would happen in the market to bring it to equilibrium

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Ossuary produces whole wheat bread which sells for $3 a loaf. In order to produce an additional loaf of bread, it would cost Ossuary $3, but the average loaf only costs them $2.50. Assuming that the market for bread is competitive, is Ossuary in short run equilibrium? Why or why not? Is Ossuary in long run equilibrium? If so, explain why. If not, explain what would happen in the market to bring it to equilibrium.

Reference no: EM131089598

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