For a Constant-Cost Industry

question 38

Multiple Choice

For a constant-cost industry,

• A) the industry must consume a large share of the inputs in the market
• B) the entry of one additional firm causes a pecuniary externality
• C) inputs must be in abundant supply

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Definitions:

Earn Interest

To receive interest as income from an investment or savings, calculated in various ways including simple or compounded methods.

Monthly

Occurring, produced, or done each month.

Simple Interest Rate

The rate at which simple interest is paid or earned over a certain period, typically expressed as a percentage.

Days

Units of time equivalent to 24 hours, representing the approximate period it takes for the Earth to complete one rotation on its axis.