In a constant-cost industry, input prices remain constant as:
A) the supply of inputs fluctuates.
B) firms encounter diseconomies of scale.
C) workers become more experienced.
D) firms enter and exit the industry.

Question

Quizplus · Accepted Answer

In a constant-cost industry, input prices remain constant regardless of the number of firms in the industry, meaning that as firms enter or exit, input prices do not change.

In a Constant-Cost Industry, Input Prices Remain Constant As