A Constant Cost Industry Is One in Which

question 187

Multiple Choice

A constant cost industry is one in which

• A) input prices do not change as output changes in the long run.
• B) supply is highly inelastic.
• C) short-run supply is horizontal.
• D) all of the above

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Definitions:

Profit and Loss Statement

A financial document that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Income Tax Form

A document individuals and businesses use to report income and calculate owed taxes to the government.

Interest Expenses

Costs incurred by an entity for borrowed funds, typically reflected in the interest payments on loans, bonds, or credit lines.