Suppose the beef industry is perfectly competitive and the demand for beef rises.As long as the demand does not subsequently fall,beef producers can expect to earn economic profits in both the short run and the long run.

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In the short run, beef producers can earn economic profits due to increased demand. However, in the long run, the perfectly competitive market structure ensures that new firms will enter the market, increasing supply until economic profits are driven to zero.

Suppose the Beef Industry Is Perfectly Competitive and the Demand