If an Industry Is a Constant-Cost Industry

question 249

Multiple Choice

If an industry is a constant-cost industry

• A)prices of its inputs increase even though output remains constant
• B)it uses inputs at higher levels of output
• C)prices of its inputs rise at a constant rate as it uses more inputs
• D)prices of its inputs remain constant as the number of firms increases
• E)firms in the industry experience economies of scale

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Definitions:

Compounded Monthly

Interest on an investment is calculated and added to the principal every month, increasing the amount of future interest earned.

Mortgage Payments

Regular payments made towards the loan used to purchase property, typically consisting of principal and interest.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments over time.

Compounded Semi-annually

A method where interest is added to the principal of an investment twice per year, accelerating the growth of the investment.