In a Constant Cost Industry, Which of the Following Statements

question 10

Multiple Choice

In a constant cost industry, which of the following statements is true?

• A)The long run market supply curve and the long run firm supply curve are both horizontal.
• B)While the long run market supply curve is horizontal, the long run firm supply curve generally is upwards sloping.
• C)The long run market supply curve and the long run firm supply curve are both upwards sloping.
• D)While the long run market supply curve is upwards sloping, the long run firm supply curve is horizontal.

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Definitions:

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders.

Stock Option Plan

A compensation strategy used by companies to grant employees the right to purchase company shares at a predetermined price after a specified period.

Compensation Expense

The total cost incurred by a business to pay its employees, including wages, benefits, bonuses, and taxes.