A constant-cost industry is one in which
A)a higher price per unit will not result in an increased output.
B)100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
C)the demand curve and therefore the unit price and quantity sold seldom change.
D)the total cost of producing 200 or 300 units is no greater than the cost of producing 100 units.

Question

Quizplus · Accepted Answer

A constant-cost industry is characterized by the feature that the cost per unit of output remains the same regardless of the scale of production. This means if 100 units can be produced for $100, then producing 150 units would cost $150, 200 units would cost $200, and so on, indicating a direct proportionality between the number of units produced and the total production cost.

A Constant-Cost Industry Is One in Which