If, as a perfectly competitive industry expands, it can supply larger quantities at the same long-run market price, it is
A)a constant-cost industry.
B)an increasing-cost industry.
C)a decreasing-cost industry.
D)a fixed-cost industry.

Question

Quizplus · Accepted Answer

In a constant-cost industry, the long-run supply curve is perfectly elastic, meaning that the industry can expand output without affecting the market price.

If, as a Perfectly Competitive Industry Expands, It Can Supply