If there occurs a permanent decrease in the demand for convenience store services,_____ in the long run

Question

Quizplus · Accepted Answer

If there is a permanent decrease in demand for convenience store services, it is likely that the revenue generated by each store will decrease. If the revenue generated by each store decreases below the cost of production, it will lead to losses. This might result in stores shutting down, which will lead to a decrease in the number of such stores. Therefore, C is the most appropriate choice.

If There Occurs a Permanent Decrease in the Demand for Convenience