In a Constant Cost Industry

question 7

Multiple Choice

In a constant cost industry:

• A)price may be greater than, less than, or equal to Average Cost.
• B)the firm's long run supply curve is horizontal.
• C)price is determined by a Walrasian auctioneer.
• D)the efficient scale of production increases with time.

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Definitions:

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Business

An enterprise or corporation participating in business, industry, or professional pursuits.

Cash Balance

The amount of cash that a company or individual has available at any given time.