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8 August, 18:12

A constant-cost industry is one in which

- the long-run supply curve is perfectly inelastic.

- the long-run supply curve is downward sloping.

- the long-run supply curve is upward sloping.

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  1. 8 August, 20:40
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    None of the given option is correct.

    Explanation:

    A constant cost industry will have a perfectly elastic long-run supply curve. This is because in such industry the cost of inputs does not increase with the increase in demand. As a result, the increase in input level will not cause a rise in the price of factors or inputs.

    When the price of inputs remains the same, the cost curve, in the long run, will be a horizontal line.
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