A constant-cost industry is one in which:

A) resource prices fall as output is increased.
B) resource prices rise as output is increased.
C) resource prices remain unchanged as output is increased.
D) small and large levels of output entail the same total costs.

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.

Resource Prices

The costs associated with acquiring the inputs or factors of production, such as labor, capital, and natural resources.

Output Increased

A scenario where production levels rise due to enhanced efficiency, greater demand, or improvements in labor and capital.