What Condition Is Necessary in a Constant Cost Industry

question 74

Multiple Choice

What condition is necessary in a constant cost industry?

• A) Prices of the industry's inputs do not change as the industry expands.
• B) Prices of the industry's inputs decline as the industry expands.
• C) Prices of the industry's inputs rise as the industry expands.
• D) There are barriers that prevent new firms from entering such an industry.

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Definitions:

Ciliary Muscles

Muscle fibers in the eye that control the shape of the lens, enabling focusing on objects at different distances.

Suspensory Ligament

Fibrous tissues that connect organs or parts of organs to each other or to skeletal structures, often supporting or holding them in place.

Lens

A transparent structure inside the eye that focuses light rays onto the retina to create clear images.

Aqueous Humor

A clear fluid filling the space in the front of the eyeball between the lens and the cornea, involved in nutrient supply and intraocular pressure maintenance.