In a constant cost industry,
A) a natural monopoly is likely to occur.
B) total cost is the same, no matter how much a firm produces.
C) the long-run supply curve will be perfectly elastic.
D) entry of new firms in the industry will lead to a reduction in the cost of inputs.

Question

Quizplus · Accepted Answer

In a constant cost industry, the long-run supply curve is perfectly elastic because input prices do not change as industry output changes, allowing firms to supply any quantity at the same price.

In a Constant Cost Industry