If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be
A) a decreasing cost industry.
B) an increasing cost industry.
C) a constant cost industry.
D) an industry characterized by economies of scale.

Question

Quizplus · Accepted Answer

In a constant cost industry, the expansion of output does not affect resource prices, meaning they remain unchanged.

If the Expansion of Output in an Industry Leads to Unchanged