Constant Cost Industries

question 66

Multiple Choice

Constant cost industries:

• A) use large portions of the total supply of specialized resources.
• B) significantly increase the demand for inputs when expanding output, and as a result, input prices rise.
• C) do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs.
• D) are those in which the cost curves of individual firms shift upwards as industry output expands.

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Definitions:

Amboid Gearing

A type of gear configuration that allows for the conduction of power through non-parallel and non-intersecting shafts, typically found in certain differential designs.

Torque Proportional Differentials

Torque proportional differentials, also known as limited-slip differentials, are drivetrain components that distribute torque to the wheels, allowing them to rotate at different speeds while providing improved traction.

Truck OEM

Original Equipment Manufacturer specializing in the production and design of trucks, providing the initial equipment and parts.

Navistar International

An American holding company that owns the manufacturer of International brand commercial trucks, buses, defense vehicles, and engines.