An agricultural engineer from Whitehall, Wisconsin has discovered a new method of milk extraction that causes less swelling to a cow’s udders, and therefore each cow has a faster recovery time between milking.
a) If all dairy farms in a perfectly competitive milk market adopt this technology, graph the short run effects for both individual firms and the market overall.
b) In words and graphical illustration (use the graph from part a), indicate the long-run effects of this technological advance.