Experience of mill for constant cost industry

When generic lumber processing is a constant cost industry, within the long run this lumber mill is probable to experience a: (i) a severe shrinking of economic profit to zero. (ii) a decline within the price of 2×4s to about $2.40 apiece. (iii) an increase into competitors as new lumber mills begin operating. (iv) reduction into the lumber mill’s equilibrium output. (v) All of the above.

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