Which of the Following Is NOT a Characteristic of a Constant

question 16

Multiple Choice

Which of the following is NOT a characteristic of a constant cost competitive industry-As the industry expands in the long run,

• A) the price of the product remains constant.
• B) inputs prices remain constant.
• C) the cost of production remains constant.
• D) the number of firms remain constant.
• E) none of the above

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Definitions:

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good that consumers are willing to purchase.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.

Producer Surplus

The gap between what sellers are prepared to take for a product or service and the actual amount they get.

Inelastic

This refers to a lack of sensitivity in the quantity demanded or supplied when the price changes.