In 2015, poultry farmers were able to sell cage-free eggs for a price that more than offset the higher costs of raising cage-free chickens. By 2019, most of that higher return had been wiped out by the entry of additional farmers into the cage-free egg market, which caused the price of those eggs to decline. This example indicates that in a competitive market,

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The example illustrates how initial higher returns (economic profits) attract more competition, which then drives prices down, making it difficult to sustain those profits in the long run. This is a common occurrence in competitive markets.

In 2015, Poultry Farmers Were Able to Sell Cage-Free Eggs