Assume that the domestic beer industry is an increasing cost industry currently in a long run equilibrium.
a)What is meant by a long run equilibrium?
b)Suppose society's demand for beer increases. Explain precisely what happens to the price and output of beer for a typical firm and for the industry as a whole in both the short run and long run. Illustrate your argument with the appropriate graphs.

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The Answer of Assume that the domestic beer industry is an increasing cost industry currently in a long run equilibrium.
a)What is meant by a long run equilibrium?
b)Suppose society's demand for beer increases. Explain precisely what happens to the price and output of beer for a typical firm and for the industry as a whole in both the short run and long run. Illustrate your argument with the appropriate graphs.

Assume That the Domestic Beer Industry Is an Increasing Cost