A Constant-Cost Industry Is One

question 42

Multiple Choice

A constant-cost industry is one

• A)that faces constant average costs in the short run
• B)that experiences economies of scale
• C)that experiences stable demand
• D)whose cost curves do not change as new firms enter
• E)that faces increasing resource prices as new firms enter

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Definitions:

Levels Of Management

The hierarchy of authority within an organization, classifying the different layers of management from top to operational level.

Revenue Centres

Units or departments within an organization responsible for generating the organization's income.

Return On Investment

A metric used to evaluate the efficiency of an investment or to compare the efficiencies of several investments.

Cost-Based Transfer Prices

A pricing method used within a company for goods and services sold between its different divisions, based on the costs incurred in producing those goods or services.