If an industry experiences constant costs, the long-run industry supply curve will be downward sloping.

Question

Quizplus · Accepted Answer

If an industry experiences constant costs, the long-run industry supply curve will be perfectly elastic, meaning it will be a horizontal line rather than a downward sloping curve. This is because firms in the industry can enter or exit without changing the market price, due to the constant costs.

If an Industry Experiences Constant Costs, the Long-Run Industry Supply