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:

Non Est Factum

A legal defense claiming that a contract is invalid because the signer was unaware of its nature due to an honest mistake.

Functionally Illiterate

The condition of having limited reading and writing skills that are insufficient for everyday needs.

Mistake of Fact

A misunderstanding or incorrect belief regarding a fact that is material to a contract at the time of its formation, potentially rendering the contract voidable.

Non Est Factum

A legal defense in contract law where a person asserts they were mistaken about the fundamental nature of a contract they signed, rendering it void.