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Business, 19.11.2019 03:31, Trinhphuongtran
Suppose the minimum possible price of constructing homes is $50 per square foot. as a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will:
a. exit the industry, and the price will fall below $40 in the long run.
b. exit the industry, and the price will rise above $40 in the long run.
c. exit the industry, and the price will remain at $40 in the long run.
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Answers: 3
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Suppose the minimum possible price of constructing homes is $50 per square foot. as a result of a sh...
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