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The Key Assumption That Distinguishes a Constant Cost Industry from Other

Question 57

Multiple Choice

The key assumption that distinguishes a constant cost industry from other types of industries is that


A) firms can earn only a normal profit in the long run
B) each firm's ATC curve is unaffected by changes in industry output
C) each firm has a horizontal long-run average total cost curve
D) there are no economies of scale available to the firms in the industry
E) each firm faces a horizontal demand curve for its output

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