Assume the Market for Beef Is Perfectly Competitive

question 289

Multiple Choice

Assume the market for beef is perfectly competitive. Beef producers are currently earning a zero economic profit. If consumers switch from beef to chicken, which of the following is most likely to occur?

• A) Beef producers will now incur economic losses in both the short run and the long run.
• B) Beef producers will incur economic losses in the short run. Some producers will exit the industry until those remaining are earning a zero economic profit.
• C) Beef producers will incur economic losses in the short run. Some producers will exit the industry until those remaining are earning an economic profit.
• D) Beef producers will now earn economic profits in the short run, and there will be no additional adjustments in the long run.

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Definitions:

William Lloyd Garrison

A prominent American abolitionist, journalist, and social reformer of the 19th century, best known for founding the anti-slavery newspaper "The Liberator" and for his radical stance on immediate emancipation.

Radical

A person or position advocating for fundamental or revolutionary changes in current practices, conditions, or institutions.

Abolitionists

Individuals who advocated for the ending of the practice of slavery throughout the world, especially in the 19th century.

Abolitionist Violence

Acts of aggression and conflict carried out in the 19th century by those advocating for the immediate end of slavery in the United States.