The key assumption that distinguishes a constant cost industry from other types of industries is that

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In a constant cost industry, the ATC (average total cost) curve of each firm remains constant regardless of changes in industry output. This is because factors of production required to produce the output of the industry are available in a constant cost and there are no economies of scale available to the firms. As a result, the firms can enter or exit the industry without affecting the cost structure of the industry. Option A is not a key assumption, as firms may earn abnormal profits in the short run due to factors like high demand or low competition. Option C is not true as such an assumption implies that firms can produce at the same cost, no matter what level of output they produce. Option D is incorrect, as there could be constant returns to scale in the industry. Option E is not true as assuming each firm faces a horizontal demand curve is a feature of a perfectly competitive market, not a constant cost industry.

The Key Assumption That Distinguishes a Constant Cost Industry from Other