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Basically correct, except I think at that point, no one would be selling eggs as they'd all be produced at home

There would still be a market just a much smaller one. There's plenty of people I know who want nothing to do with raising birds for meat or eggs

This is my way of saying not everyone will want to keep chickens.

If we were free trade, faster producing outside markets (lower quality) would dump product into local markets and economic standards in the local would drop precipitously.