What characterizes a constant-cost industry and what causes it to be a constant-cost industry?
What will be an ideal response?
A constant cost industry is one with a horizontal long-run supply curve. The long-run supply curve is horizontal because input prices do not change with quantity produced.
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Jane is a top-level executive earning a high salary. Jane has just ordered a luxury car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is TRUE?
A) The car is not a scarce good. B) The car is an economic good. C) The car is human capital. D) The car is an intangible good.
Unions face a trade-off between higher wages and
A) fewer available positions. B) more available positions. C) equipment. D) none of the above.
The change in saving divided by the change in income is the:
a. propensity to save. b. saving function. c. average propensity to save. d. extra propensity to save. e. marginal propensity to save.
Which of the following represents a function of money?
A. medium of exchange B. standard of deferred payment C. unit of accounting D. all of these