In a competitive constant-cost industry,an increase in consumer demand leads to

Question

Quizplus · Accepted Answer

In a competitive constant-cost industry, an increase in consumer demand leads to an increase in output. This is because the industry has a constant-cost structure, meaning that producing more units of output does not lead to an increase in costs per unit. Therefore, firms can increase output to meet the higher demand without facing higher costs.

In a Competitive Constant-Cost Industry,an Increase in Consumer Demand Leads