A Constant-Cost Industry Is One in Which

question 97

Multiple Choice

A constant-cost industry is one in which

• A) a higher price per unit will not result in an increased output.
• B) if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
• C) the demand curve and therefore the unit price and quantity sold seldom change.
• D) the total cost of producing 200 or 300 units is no greater than the cost of producing 100 units.