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Answer to Question #148385 in Economics for Victor Ose Moses
Question #148385
In the short run (short-term) how do ship-owners adjust (respond) to price changes in freight rate?
Expert's answer
In case of increase of freight rate ship-owners will keep providing their services hoping for their future profits and trying to stay a reliable partner for their clients. Once they reach the end of their financial resources, they will be forced to stop their work or go bankrupt.
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#340153 on Dec 2023
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