A constant-cost industry will have

Question

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In a constant-cost industry, firms can enter and exit the industry without affecting the cost of production for existing firms. This means that there is no change in the minimum efficient scale of production or the average cost of production as the industry expands or contracts. As a result, firms can increase output without experiencing increasing costs. This leads to a perfectly elastic long-run supply curve, as firms can perfectly adjust to changes in demand without affecting the cost of production.

A Constant-Cost Industry Will Have