A constantcost industry is one in which Multiple Choice reso

A constant-cost industry is one in which:

Multiple Choice

resource prices remain unchanged as output is increased.

small and large levels of output entail the same total costs.

resource prices rise as output is increased.

resource prices fall as output is increased.

Solution

A constant cost industry is one in which resource prices or input prices remain unchanged as output increases. This means that long run supply curve of this industry is horizontal. So option (a) is correct.