Which of the following is NOT a characteristic of a constant cost competitive industry? As the industry expands in the long run,

Question

Quizplus · Accepted Answer

In a constant cost competitive industry, input prices remain constant as the industry expands and the cost of production remains constant. The price of the product also remains constant because firms cannot raise prices without losing market share. However, the number of firms may increase as new firms enter the industry attracted by the constant cost structure. Therefore, option D is not a characteristic of a constant cost competitive industry as the number of firms can change in the long run.

Which of the Following Is NOT a Characteristic of a Constant