A Constant-Cost Industry Is One

question 42

Multiple Choice

A constant-cost industry is one

• A)that faces constant average costs in the short run
• B)that experiences economies of scale
• C)that experiences stable demand
• D)whose cost curves do not change as new firms enter
• E)that faces increasing resource prices as new firms enter

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making and problem-solving.

Logarithms

The mathematical operation that determines the power to which a base number is raised to obtain a certain value.

Convergence

Binocular depth perception cue; the rotation of the two eyes in their sockets to focus on a single object, resulting in greater convergence for closer objects and lesser convergence if objects are distant.

GPS Location

A system that uses satellite signals to determine the precise location of a device or individual on Earth.