Explore BrainMass
Share

Explore BrainMass

    Suppose you own a home remodeling company. You are currently

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

    Suppose you own a home 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: your firm's costs of production? Explain. The price you can charge for your remodeling services? Why? Profits in home remodeling? Why?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:16 am ad1c9bdddf
    https://brainmass.com/economics/factors-of-production/suppose-you-own-a-home-remodeling-company-you-are-currently-453752

    Solution Preview

    In the long run, what do you expect will happen to: your firm's costs of production? Explain.

    The cost of production will increase, because the industry is a cost-increasing industry. If we were dealing with an industry that used commodities that have been declining recently, the cost of production would decrease because there would be an excess supply of the ...

    Solution Summary

    Suppose you own a home 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: your firm's costs of production? Explain. The price you can charge for your remodeling services? Why? Profits in home remodeling? Why?

    $2.19