A constant-cost industry is one in which

Question

Quizplus · Accepted Answer

In a constant-cost industry, the per-unit costs of production do not change even as output varies because firms can easily obtain the necessary inputs without increasing their prices. This means that the long-run average cost curve is horizontal. This is different from a decreasing-cost industry where the per-unit costs decrease as output increases due to economies of scale and an increasing-cost industry where the per-unit costs increase as output increases due to diseconomies of scale. Therefore, option C is the best choice.

A Constant-Cost Industry Is One in Which