A constant-cost industry is one in which
A) output increases lead to productivity gains.
B) the marginal product of labor is constant.
C) there is no change in long-run per-unit costs, even as output varies.
D) each firm has a horizontal long-run average cost curve.
Answer: C
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550For all three firms, the marginal cost of pollution abatement is:
A. increasing B. decreasing C. decreasing and then increasing D. constant
All else equal, when oil prices increase, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
Which of the following will increase economic freedom?
a. an increase in tariff rates imposed on imported goods b. an increase in government spending as a share of the economy c. elimination of regulations that make it difficult to start a business d. an increase in the rate of inflation and its variability
According to the textbook, the evidence indicates that NAFTA has:
A. reduced the employment of unskilled workers in the United States significantly. B. reduced the wages of skilled workers in the United States. C. stopped illegal immigration from Mexico. D. not significantly reduced the employment of unskilled workers in the United States.