Explore BrainMass
Share

Explore BrainMass

    Analyzing behavior of Increasing cost industry

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose you own a remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing cost industry. In the long run, what do you expect will happen to:

    a. Your firm's costs of production? Explain.
    b. The price you can charge for your remodeling services? Why?
    c. Profits in home remodeling? Why?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:29 am ad1c9bdddf
    https://brainmass.com/economics/factors-of-production/analyzing-behavior-increasing-cost-industry-293914

    Solution Preview

    a. Your firm's costs of production? Explain.

    As firm is making short-run profits, new firms will enter into the market. Demand for input factors will increase. So, inputs will become ...

    Solution Summary

    The expert analyzes behavior of increasing cost industry.

    $2.19