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?
A) The equilibrium price is likely to remain unchanged and profits are likely to increase.
B) The equilibrium price is likely to decrease and profits are likely to decrease.
C) The equilibrium price is likely to increase and profits are likely to increase.
D) The equilibrium price is likely to increase and profits are likely to remain unchanged.
B
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According to economic theory, state governments
A) will be biased toward chronic budget deficits. B) will act in the public interest. C) will act in the national interest. D) will do all of the above. E) will do none of the above.
If there isn't sufficient information available, then which of the following approaches to reduce conflicts of interest will have the lowest probability of working?
A) leave it to the market B) supervisory oversight C) separation of functions D) socialization of information production