Independent trucking (i.e. large semi trucks) is an industry that can be considered perfectly competitive. Suppose that U.S. manufacturers produce less output. What impact will this have on the independent trucking industry in the short run, in terms of the market price, output of an individual firm, and market equilibrium quantity? Explain your reasoning. What impact will the increase in manufacturing output have in the long run? Explain your reasoning.

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Part 1 If the US manufacturers start to produce less output then the demand for independent trucking ... View the full answer