Question
Suppose Hussain owns a house renovation company. He is currently earning short-run profits. The house renovation industry is an increasing-cost industry. In the long-run, what
Suppose Hussain owns a house renovation company. He is currently earning short-run profits. The house renovation industry is an increasing-cost industry. In the long-run, what do you expect will happen to:
a)Hussain's costs of production?
Explain in details
b)The price Hussain Obama can charge for his renovating services?
Why?
c)Profits in home renovating?
Why?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
