A Constant-Cost Industry Is an Industry in Which

question 112

Multiple Choice

A constant-cost industry is an industry in which

• A)average costs fall as the industry expands output.
• B)average costs rise as the industry expands output.
• C)average costs remain constant as the industry expands output.
• D)input prices rise at a constant rate as firms in the industry use more inputs.

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Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, subject to business performance.

Claim on Assets

Legal rights or interests that creditors and shareholders have on a company’s assets, usually in the event of the company's liquidation.

Fixed Dividend

A specified amount of money paid regularly by a company to its shareholders out of its profits or reserves.

Dividend Growth

The annualized percentage rate of growth of a company's dividends per share.