demand for corn$-$based ethanol fuel increased.

What do you expect to happen in the long run for the corn industry given this recent success?

The price per bushel of corn will continue to increase, yielding higher profits. Thus, more firms will enter the market indefinitely.

Profits will become negative due to overfarming, which will result in the corn farming industry going under.

Profits will be equal to zero.

None of the above.

Correct Answer