Home remodeling industry is constant-cost industry

Assignment Help Business Economics

Reference no: EM131099425

Suppose you earn a home remodeling company. You are currently earning short run profits. The home remodeling industry is a CONSTANT-COST industry. In the long run, what do you expect will happen to A. you firms cost of production. Explain. B. The price you can charge for your remodeling services? Why? C. Profits in home remodeling? Why?

Reference no: EM131099425

Questions Cloud

Explain why the flexibility of wages : Keynesian and Classical Debates (Chapter 15): In no less than 200 words explain why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and the classical economic view in the long run.

Rapid advances in drilling control technology : Petroleum Drilling, Inc., is considering installation of a new automated drilling equipment. The new equipment can be installed for $12,850,000 today and will have a life of 4 years until technological obsolescence due to rapid advances in drilling c..

Using the assumptions of perfect competition : Using the assumptions of Perfect Competition, explain how such firms earn no economic profit in the long run. How does perfect competition result in the best outcomes from both consumers and producers?

Find the consumer-producer and total surpluses : Consider the following market QD= 15-2P QS= 5P-2.5, with the government imposing a tax of 1.4 dollars per unit. Find the consumer, producer and total surpluses. What is the tax burden for each of the market participant?

Home remodeling industry is constant-cost industry : Suppose you earn a home remodeling company. You are currently earning short run profits. The home remodeling industry is a CONSTANT-COST industry. In the long run, what do you expect will happen to A. you firms cost of production. Explain. B. The pri..

The revenue function and the domain of the function : The demand for a product is p = 70-0.7x where x is the quantity for the item sold at $p dollars per piece. Determine the revenue function and the domain of the function. Include a full explanation of how you found the revenue function. What price sho..

What is the real user cost of the building : A firm just purchased a building that cost $5 million. The nominal mortgage interest rate is 5% per annum, mortgage interest payments are tax deductible, and the firm is in a 20% tax bracket. The expected inflation rate is 3%. Maintenance expenses ar..

Consider the cap-and-trade system : Consider the cap-and-trade system and the market for tradable pollution permits and answer all parts of the question. If all polluters adopt a more efficient abatement technology, how will it affect the permit price? Will the ambient environmental qu..

Goods or services are non excludable : Which of the following goods or services are non excludable? Justify your answer. a) police protection b) streaming music from satellite transmission programs c) roads d) primary education e) cell phone service.

User Account

All Pages