Suppose you own a home remodeling company. You be currently earning short-run profits. The home remodeling assiduity is an increasing-cost industry. In the long run, what do you expect will happended to a. Your firms cost of production? explain. b. The price you can charge for your remodeling services? wherefore?
a) The firms cost of production will make up, because the premise is that the industry is an increasing-cost industry
b) That doesnt needfully imply that you can charge more for your services though. Naturally, you befuddle to pass on the cost of materials used to the client (those be are increasing), but if you raise your labor rates or the amount you charge for services too, one may gamble not getting the job. USA, there really isnt a unit of measurement lot of extra money floating around for luxuries alike(p) home remodeling projects right now. I have a hot up thats a contractor who has a great natural genius and eye for remodels,and has shared that the past two years has been the lazy in his 25+ years in this field. I intend consumers are more practical and are cutting subscribe on what they can live without. If one should raise rates, it would enormously risks the fact that jobs would be awarded less.
So people that are self-importance employed are probably finding themselves in positions that where they are doing more for less.
Chapter 12: Applied Problem 5
Antitrust politics at the Federal Trade Commission are reviewing your companys novel merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same food market will increase market power. A listening is scheduled for your company to defer arguments that your firm has not increased its market power arena this merger. Can you do this? How? What evidence might you bring to the hearing?
It would be almost impossible to try and claim that your market power didnt increase (this assumes your rival is close to your size). However, you could argue that...If you involve to get a full essay, order it on our website: Orderessay
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