Question

A constant-cost industry is one in which_______
a.a higher price per unit will not result in an increased output.
b.if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
c.the demand curve and therefore the unit price and quantity sold seldom change.
d.the total cost of producing 200 or 300 units is no greater than the cost of producing 100 units.

Answer 1

Answer:

b.if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.

Explanation:

Constant-cost means the cost of producing one unit of product does not change no matter how many products each firm in the industry decide to produce.

If the cost of production is $100 for 100 units, $150 for 150 units, $200 for 200 units and so forth, it means the unit production cost is a constant $1 regardless of the quantity to be produced.