Asked by Lydia Silva on Jul 19, 2024
Verified
An industry with a horizontal long-run supply curve is called a(n) ________ industry.
A) constant-cost
B) decreasing-cost
C) increasing-cost
D) decreasing-profit
Constant-Cost Industry
An industry where the cost of production does not change as the industry's output changes.
- Discern how aspects of an industry influence the development of the long-run industry supply curve.
Verified Answer
BK
Bilonda Kalemba
Jul 22, 2024
Final Answer :
A
Explanation :
An industry with a horizontal long-run supply curve is called a constant-cost industry. This means that as the industry expands, the input prices remain constant, leading to constant costs of production even as output increases.
Learning Objectives
- Discern how aspects of an industry influence the development of the long-run industry supply curve.