Which of the Following Is True of a Constant Cost

question 22

Multiple Choice

Which of the following is true of a constant cost industry?

• A)Along the industry's long-run supply curve,firms in the industry earn a positive economic profit.
• B)The long-run supply curve for a constant cost industry is horizontal.
• C)The industry's long-run supply curve is derived by horizontally summing the long-run supply curves of the individual firms.
• D)In the long run,the industry experiences an increase in the price of inputs.

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Definitions:

Implied Warranty

A legal theory in commerce that holds sellers responsible for ensuring the products sold are suitable for their intended use, even if not explicitly stated.

Puffing

Exaggerated or boastful statements about a product or service that are subjective and not meant to be taken literally.

Restatement Of Contracts

A comprehensive set of principles regarding contract law drafted by legal scholars to help clarify and unify the law of contracts.

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, ensuring warranties on consumer products are clear and enforceable.