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.

Economic Profits

The difference between a firm's total revenues and its total economic costs, where economic costs include both explicit and implicit costs.

Perfectly Competitive

In a perfectly competitive market, there are many buyers and sellers, the products are homogenous, and no single entity can influence the market price.

Demand Rises

Occurs when there is an increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.