Describe the Supply Curve of a Constant Cost Industry

question 70

Multiple Choice

Describe the supply curve of a constant cost industry.

• A) upward sloping
• B) flat
• C) downward sloping
• D) downward sloping, then upward sloping

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Definitions:

Bonds

Bonds are debt securities issued by entities such as corporations or governments to raise funds, promising to repay the borrowed money at a specified interest rate over a set period.

Interest

The cost of borrowing money or the income earned from lending money, usually calculated as a percentage of the principal amount.

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.