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Assume that 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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