If firms' unit costs remained constant as firms increased their output levels, this would lead to a
A)vertical AD curve.
B)horizontal AS curve.
C)vertical AS curve.
D)horizontal AD curve.
E)horizontal AE curve.

Question

Quizplus · Accepted Answer

A horizontal AS curve indicates that firms can increase output without increasing prices, which aligns with constant unit costs as output increases.

If Firms' Unit Costs Remained Constant as Firms Increased Their