In a Perfectly Competitive Constant-Cost Industry

question 95

Multiple Choice

In a perfectly competitive constant-cost industry:

• A) factor prices do not change as industry output increases.
• B) factor prices rise as industry output increases.
• C) factor prices fall as industry output increases.
• D) there is no way to predict what will happen to factor prices as industry output increases.

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Definitions:

Secured Interest

A legal claim or lien on collateral that has been pledged by a borrower to secure payment of a debt.

Notation

A system of symbols or marks used for representing information, especially in mathematical or musical contexts.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, used in the U.S. under the Uniform Commercial Code.

Certificate of Title

An official document indicating ownership of property, such as real estate or a vehicle.