Which of the Following Is True for a Constant Cost

question 250

Multiple Choice

Which of the following is true for a constant cost industry?

• A) The total cost of producing 500 units will be the same as the total cost of producing 250 units.
• B) If 100 units can be produced for $500, then 200 units can be produced for $1,000.
• C) The demand curve and, therefore, the unit price in the industry are constant.
• D) Firms in the industry will hold output constant if the price of the product increases.

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Definitions:

Amendment

A suggested or actual alteration or augmentation put forth for a legal document, statute, or constitution.

Easement

A right granted to use the property of another for a specific purpose, such as right of way, without owning, possessing, or having any other title to the land.

Conveyance

The act of transferring ownership or interest in property from one party to another, typically through a legal document such as a deed or title.

Landlocked Properties

Properties that do not have direct access to a public road or thoroughfare, relying on easements for access.