If the gadget industry is a constant-cost industry, an increase in demand for gadgets in the long run will result in:

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Quizplus · Accepted Answer

In a constant-cost industry, the cost of producing gadgets remains the same regardless of the increase in demand. Therefore, firms will continue to enter the industry to supply the increased demand, resulting in an increase in the number of firms at a constant price. Conversely, in a decreasing-cost industry, as output increases, the cost of producing each gadget decreases. In this case, an increase in demand would lead to an increase in the number of firms at a lower price.

If the Gadget Industry Is a Constant-Cost Industry, an Increase