After an Increase in Demand in a Constant-Cost Industry, Firms

question 39

True/False

After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves.

---

Definitions:

Feasibility Study

An assessment of the practicality and potential success of a proposed project or business, analyzing variables such as cost, risk, and benefits.

Action

A process or act of doing something, usually to achieve an intended outcome or goal.

Detailed Financial Projections

Comprehensive forecasts about a company’s future financial status and performance over a period of time.

Entrepreneurial Activities

Actions aimed at initiating, designing, launching, and running a new business or enterprise, often in the face of financial risk.