In a Constant Cost Industry, an Increase in Price Causes

question 137

Multiple Choice

In a constant cost industry, an increase in price causes

• A) some firms to exit the industry.
• B) quantity supplied to remain constant.
• C) some firms to enter the industry.
• D) price controls.

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Definitions:

Comparative Advantage

Comparative advantage is an economic theory that describes how an entity can produce goods at a lower opportunity cost than another, leading to efficient trading and increased economic welfare.

Editing

The process of preparing written material by correcting, condensing, or modifying it for publication or presentation.

Typing

The act of inputting text into a device, such as a computer or a smartphone, by pressing keys or using a virtual keyboard.

Gains From Trade

The net benefits that individuals, companies, or countries obtain by voluntarily exchanging goods or services with one another.