In a constant cost industry, as prices rise due to an increase in demand, initially profits generally:

Name: In a constant cost industry, as prices rise due to an increase in demand, initially profits generally:
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In a constant cost industry, when demand increases, prices initially rise, leading to an increase in profits for existing firms. This is because their costs do not immediately increase with the rise in demand and prices.

In a Constant Cost Industry, as Prices Rise Due to an Increase