In a constant cost industry, it is:
a. very difficult to expand industry output without raising revenues.
b. very difficult to expand industry output without reducing costs.
c. very easy to expand industry output without reducing revenues.
d. very easy to expand industry output without raising costs.
Industry refers to the group of firms, organization or enterprises that are produces similar products and can influence the decision of each other in the market. Any change in the price of one organization can lead to affect the quantity demanded of products produced by other organizations.
Answer and Explanation:
The correct statement is d. very easy to expand industry output without raising costs.
A constant cost industry refers to the industry that is able to produce any quantity of output without affect the production that that includes cost of raw material or any other inputs used during the production due to which a firm can expand there business by producing more output without raising cost.
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fromChapter 6 / Lesson 1