A constant-cost industry is an industry in which
A) average costs fall as the industry expands output.
B) input prices rise at a constant rate as firms in the industry use more inputs.
C) average costs rise as the industry expands output.
D) average costs remain constant as the industry expands output.
D
You might also like to view...
During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that
A) Africa, Asia, and Latin America have comparative advantage in coffee production. B) the United States has absolute advantage in coffee production. C) Africa, Asia, and Latin America have absolute advantage in coffee production. D) the United States has comparative advantage in coffee production.
Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.9, the tax rate equals 0.25, and the marginal propensity to import equals 0.15
What will be an ideal response?