In a Constant Cost Industry, While the Long Run Market

question 65

True/False

In a constant cost industry, while the long run market supply curve is upwards sloping, the long run firm supply curve is horizontal.

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Definitions:

Stock Issuance Costs

The expenses related to issuing new stocks, including legal, accounting, and underwriting fees.

New Shares

New shares refer to additional stocks issued by a company either through public offerings or rights issues to existing shareholders, which can dilute current ownership percentages.

Consolidated Receivables

The aggregation of all receivables or money owed by customers to a company, combined from all its divisions or subsidiaries for reporting purposes.

Par Value

The nominal or face value of a stock or bond, typically used as an accounting standard rather than reflecting market value.