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An industry in which the firm’s cost structures do not vary with changes in production will have a long-run supply curve that rev: 06_26_2018 Multiple Choice is perfectly elastic. is perfectly inelastic. slopes downward. slopes upward.

Respuesta :

Answer:

Explanation:

A constant cost industry is characterized with constant cost conditions. This means that the input price does not increases with the the increase in demand.

Such industry will have a horizontal supply curve in the long run. This is because an increase or decrease in the output level will not cause any change in the price of inputs. The price of product will remain the same. As the output level goes on increasing the cost will remain constant.