A permanent decrease in demand for convenience store services is likely to cause which of the following in the long run?

Question

Quizplus · Accepted Answer

A permanent decrease in demand for convenience store services means there is less demand for their output. This will lead to a decrease in revenue for each firm, which can result in economic losses. This decrease in revenue will also make it difficult for some firms to cover their fixed costs, leading to fewer firms being able to stay in the industry in the long run. Therefore, the correct answer is fewer firms in the industry (option C).

A Permanent Decrease in Demand for Convenience Store Services Is