Suppose the wool industry is perfectly competitive. Draw 6 diagrams showing the equilibrium positions of a competitive firm in the short run and in the long-run.i)Assuming that a single firm is enjoying abnormal profits, draw another diagram to show the effects of the development of artificial fibres that reduces the demand for wool on the firm’s equilibrium position.

/in /by

Suppose the wool industry is perfectly competitive. Draw 6 diagrams
showing the equilibrium positions of a competitive firm in the short
run and in the long-run.i)Assuming that a single firm is enjoying
abnormal profits, draw another diagram to show the effects of the
development of artificial fibres that reduces the demand for wool on
the firm’s equilibrium position.

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