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Assume there is a competitive market for physical therapy visits, that firms have increasing marginal costs, firms can enter or exit the market only in
Assume there is a competitive market for physical therapy visits, that firms have increasing marginal costs, firms can enter or exit the market only in the long run (not the short run), and long-run average costs for the market are constant (i.e., neither decreasing nor increasing) as quantity changes. If the price of a substitute (e.g., medication treatment) increases, then as compared with the equilibrium price of physical therapy visits prior to the substitute's price increase, the new equilibrium price of physical therapy visits will (decrease, stay the same or increase) in the short run and (decrease, stay the same or increase) in the long run
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