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

---

Definitions:

Specified Amount

A certain, defined quantity or sum mentioned in a financial document or agreement.

Definite Time

A specified, clear duration with a known start and end point.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Notes Receivable

Notes receivable are written promises for amounts to be received, typically detailing the interest rate and when the principal and interest payments are due.