Explain What Happens to Firm Output and Profits in the Long

question 48

Essay

Explain what happens to firm output and profits in the long run when higher energy costs raise the marginal cost of production for firms in a competitive industry.

---

Definitions:

Building

A fixed structure used for residential, commercial, or industrial purposes, considered a long-term physical asset in accounting.

Discount

A reduction applied to the normal selling price of goods or services, usually offered as an incentive to encourage purchase.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.

Cash

Currency available for use in transactions or deposits, represented by coins or banknotes.