If Japan's economy is subject to constant costs, then its supply curve of automobiles will be:
A) downward sloping.
B) upward sloping.
C) horizontal.
D) vertical.
E) indeterminate.

Question

Quizplus · Accepted Answer

A constant cost in the production of automobiles implies that the cost of producing an additional unit is the same, regardless of the quantity produced. This results in a horizontal supply curve, indicating that the supplier is willing to supply any quantity at a fixed price.

If Japan's Economy Is Subject to Constant Costs, Then Its