Many small boats are made of fiberglass which is derived, Business Economics

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Many small boats are made of fiberglass which is derived

Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price of oil rises.

a. Using diagrams, show what happens to the cost curves of an individual boat-making firm and to the market supply curve.

b. What happens to the profits of boat makers in the short run? What happens to the number of boat makers in the long run?

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Business Economics: Many small boats are made of fiberglass which is derived

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