A constant cost industry has an infinitely elastic long-run supply curve.

Name: A constant cost industry has an infinitely elastic long-run supply curve.
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Question

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In a constant cost industry, the cost of production does not change with the increase or decrease in output. Therefore, firms can enter or leave the industry without affecting the cost of production. As a result, the long-run supply curve is infinitely elastic, meaning that firms can supply any amount of output at a constant cost.

A Constant Cost Industry Has an Infinitely Elastic Long-Run Supply