The Key Assumption That Distinguishes a Constant Cost Industry from Other

question 57

Multiple Choice

The key assumption that distinguishes a constant cost industry from other types of industries is that

• A)firms can earn only a normal profit in the long run
• B)each firm's ATC curve is unaffected by changes in industry output
• C)each firm has a horizontal long-run average total cost curve
• D)there are no economies of scale available to the firms in the industry
• E)each firm faces a horizontal demand curve for its output

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Definitions:

Chunking

A memory strategy that involves breaking down information into smaller, manageable units or groups to enhance comprehension and recall.

Short-Term Memory

The potential to maintain a small volume of data in an immediately available and active status for a limited time.

Maintaining Information

The process of retaining information in the memory system over time, crucial for learning and recall.

Semantic Cue

A hint or signal in communication that relies on the meaning of words or phrases to aid understanding or memory.