(a) Explain the differences between accounting profit, economic profit and normal profit.

(b) Suppose that due to changing tastes there is a sudden increase in demand for emu meat.

(i) Assuming the costs of emu meat production remain unchanged, what would you expectto happen to profitsin the emu meat industry?

(ii) Assuming that there are low barriers to entry into the emu meat industry, explain why resources would move into this industry?mm

(iii)In the long run, what would you expect to happen to profits in this industry?

(iv) Will normal profits occur in this industry in the long run?If so, explain why?