The total revenue of rail companies will fall because of reduced demand. A better than expected harvest. A fall in the price of rice. An increase in agricultural wages. A firm makes profits substantially above the average in the economy for a period of twenty years.
All firms charge the same price for their products.
Explain why average costs of production are expected to eventually rise in the short run as output of a firm rises, while in the long run average costs are expected to fall as output of the firm rises. The washing powder industry in the UK is dominated by two large companies. The level of the companies output. The number of brands in the market place. A recession in the economy.