Author Question: In a constant cost industry: a. a natural monopoly is likely to occur. b. total cost is the same, ... (Read 54 times)

cagreen833 · **on:** Jun 30, 2018

In a constant cost industry:
a. a natural monopoly is likely to occur.
b. total cost is the same, no matter how much a firm produces.
c. the long-run supply curve will be perfectly elastic.
d. entry of new firms in the industry will lead to a reduction in the cost of inputs.

Question 2

When the government imposes a tax, sellers raise their price by the full amount of the tax.
a. True
b. False
Indicate whether the statement is true or false