If as a perfect competitive industry expands, it can supply larger quantities at

Question

If as a perfect competitive industry expands, it can supply larger quantities at the same long run market price. It is
A constant cost industry
An increasing cost industry
A decreasing cost industry
A fixed cost industry If as a perfect competitive industry expands, it can supply larger quantities at the same long run market price. It is
A constant cost industry
An increasing cost industry
A decreasing cost industry
A fixed cost industry
A constant cost industry
An increasing cost industry
A decreasing cost industry
A fixed cost industry

Explanation / Answer

Ans is A

Constant cost industry means when industry expands, it produces more of the output then average cost will remain same. Thus for same price the industry can supply more output.

Supply curve of a constant cost industry will be horizontal which makes for given price, more of the quantity can be supplied.

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