Walter sells stainless-steel cookware. If Walter is making positive economic profits in the short run, then in the long run: the short-run industry supply curve will shift leftward. industry output will rise, and the price will rise. firms will leave the industry. new firms will enter the industry.
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Step 1: In the short run, Walter is making positive economic profits, which means that his revenue from selling stainless-steel cookware is greater than his total costs, including both explicit and implicit costs. Show more…
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