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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?

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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?

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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 ...

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