The conclusion of this blog post is that a constant-cost industry is one in which the average cost to produce each unit remains unchanged. This means that as production increases, prices will decrease. When demand decreases, however, prices will increase because there are higher costs involved with producing fewer units. A company needs to know how their product competes and adjusts accordingly so they can maximize profits while maintaining the same level of efficiency throughout all stages of production.
A constant-cost industry is one in which
May 31, 2020 by
