Recall the application on economic detective and the case of margarine prices,the margarine industry is an example of a constant-cost industry because as the total output of the industry changes the price of the key inputs to the production of margarine don't change as a result:

Question

Quizplus · Accepted Answer

In a constant-cost industry, the unit cost of production remains the same regardless of changes in total output. Therefore, the key inputs to the production of margarine, such as oil and other ingredients, do not change in price as total output changes.

Recall the Application on Economic Detective and the Case of Margarine