If the Costs of Production Do NOT Change as Output

question 376

Multiple Choice

If the costs of production do NOT change as output increases in the long run in a perfectly competitive industry, then this is a

• A) constant-return-to-scale industry.
• B) constant-competitive industry.
• C) constant-cost industry.
• D) constant-price industry.

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Definitions:

Account Receivable

Funds that are owed to a company by clients or customers who have received goods or services on credit.

Total Liabilities

Represents the combined debts and obligations that a company owes to outside parties at a specific point in time.

Asset

Any resource owned or controlled by a business or an individual that is expected to produce future economic value.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership equity spread among stockholders.