An Industry in Which an Increase in Industry Output Is

question 355

Multiple Choice

An industry in which an increase in industry output is accompanied by an increase in long-run per-unit costs is a(n)

• A) increasing-cost industry.
• B) constant-cost industry.
• C) break-even cost industry.
• D) decreasing-cost industry.

---

Definitions:

Price Elasticity of Demand

The degree to which the quantity demanded of a good changes in response to a change in its price, indicating consumers' sensitivity to price variations.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Insurance Exchanges

Marketplaces established to facilitate the purchase and sale of insurance plans, allowing consumers to compare and choose from various health insurance options.

Foster Competition

To encourage or promote a market environment where businesses compete freely with one another, aiming to improve efficiency and innovation.