The Key Assumption That Distinguishes a Constant Cost Industry from Other

question 57

Multiple Choice

The key assumption that distinguishes a constant cost industry from other types of industries is that

• A)firms can earn only a normal profit in the long run
• B)each firm's ATC curve is unaffected by changes in industry output
• C)each firm has a horizontal long-run average total cost curve
• D)there are no economies of scale available to the firms in the industry
• E)each firm faces a horizontal demand curve for its output

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Definitions:

Planning Process

A systematic approach involving the setting of goals, developing strategies, and outlining tasks and schedules to achieve these goals.

Management by Objectives (MBO)

A management strategy focusing on defining specific objectives that management and employees agree to achieve, thus guiding activities and performance measurement.

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An evaluation process in which an individual assesses their own performance, strengths, and weaknesses.

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The outcomes or achievements resulting from the execution of specific actions, tasks, or activities.