If these firms are earning positive economic profits, what happens in the long run to the following: the price of trucking services, the industry quantity of output, the profits of trucking firms?
Given these conditions, is the independent trucking industry a constant-cost, an increasing-cost, or a decreasing-cost industry?
2007-03-11 06:36:04 · 2 answers · asked by TP2001 2 in Social Science ➔ Economics
Independent truckers have little or no bargaining power to get diesel fuel at a lower price than big trucking firms. Therefore they buy fuel at higher costs and must charge more for their transportation services, making it harder to compete with the BIG BUSINESS truckers... The independent trucker must also pay out-of-pocket for truck repairs and upkeep, there making the independent trucking industry an "INCREASING-COST " industry.
2007-03-11 07:54:56 · answer #1 · answered by shitstainz 6 · 0⤊ 0⤋
Suppose you did your own homework...
Perhaps, you might learn something.
2007-03-11 06:39:21 · answer #2 · answered by Mr. G 6 · 0⤊ 0⤋