A Constant-Cost Industry Is One in Which

question 97

Multiple Choice

A constant-cost industry is one in which

• A) a higher price per unit will not result in an increased output.
• B) if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
• C) the demand curve and therefore the unit price and quantity sold seldom change.
• D) the total cost of producing 200 or 300 units is no greater than the cost of producing 100 units.

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Definitions:

Consumer Goods

Products that are purchased by consumers for personal or household use, as opposed to goods used by businesses to produce other goods.

Capital Goods

Long-lasting goods acquired or manufactured by a business that are used in the production of other goods or services, rather than being sold to consumers.

Opportunity Cost

The expense incurred by not selecting the second-best choice available when deciding between multiple options.

Consumer Goods

Products and services that are purchased for consumption by the average household or end user, rather than for the purpose of resale or further processing.