If an Industry Experiences Constant Costs, the Long-Run Industry Supply

question 246

True/False

If an industry experiences constant costs, the long-run industry supply curve will be downward sloping.

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Definitions:

Demand Curve

A graph depicting the relationship between the quantity of a good that consumers are willing to buy and the price of the good.

Total Costs

The total of all expenses involved in creating goods or services, encompassing both fixed and variable costs.

Daily Profit

The financial gain or loss a business experiences on a daily basis, calculated as the difference between daily revenue and daily expenses.

Capacity

The maximum output that a company can produce under normal conditions.