Market and individual firms in short run and long run


Question: Assume the market for wine is a perfectly competitive market and wine firms are making zero economic profit. A health report finds that wine consumption is associated with longer life. What will be the effect of this on both the market and individual firms in the short run and in the long run? Use appropriate diagrams to illustrate these effects.

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Microeconomics: Market and individual firms in short run and long run
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