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    Increasing-cost industry

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    Can you help me with this study question?

    If you own a home remodeling company. You are currently earning short-run profits. This industry is an increasing-cost industry. What do you feel will happen in the long-run to your firm's cost of production & why. What about the price you can charge for your remodeling services and why? Lastly, to the profits in home-remodeling and why?

    Thank you.

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    https://brainmass.com/economics/short-and-long-run-cost-functions/48320

    Solution Preview

    Your cost of production will increase as firm is an increasing cost industry. Increasing cost industry means that there will be increase in ...

    Solution Summary

    This explains the concept of increasing-cost industry

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