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Need help to understand making the right choice. Consider DVDs and DVD players. If the price of DVDs increases, what will eventually happen to the

Need help to understand making the right choice.

Consider DVDs and DVD players. If the price of DVDs increases, what will eventually happen to the number of firms producing DVD players? If the costs of producing DVDs increase, what will eventually happen in the market for DVDs? In the long run,

options :

  • the number of firms will eventually increase, but the existing firms will cut back production in the short run.
  • the number of firms will eventually decrease and the existing firms will cut back production in the short run.
  • the number of firms will eventually decrease, but the existing firms will expand production in the short run.
  • the number of firms will eventually increase and the existing firms will expand production in the short run.
  • the number of firms will not be affected, but the existing firms will cut back in the short run.

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