The annual insurance premiums for Michael's Machine Shop have permanently risen because of a recent series of thefts by employees,but there is no change in the premiums paid by Michael's competitors.If machine shops are a competitive constant-cost industry,then in the long run

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In a competitive constant-cost industry, firms are price takers and cannot sustain higher costs than their competitors. If Michael's Machine Shop faces permanently higher insurance premiums, it will have higher costs than its competitors, leading to losses and eventually being driven out of business in the long run.

The Annual Insurance Premiums for Michael's Machine Shop Have Permanently