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.