APFIVE Long-Run Adjustment in a Constant-Cost Industry
How might a producer operating in a constant cost industry long run respond to an increase in market demand affecting all its competitors?
A
Decrease production to maintain higher prices and prevent possible excess supply.
B
Ignore the change in demand assuming it will be absorbed by other competitors.
C
Invest in high-tech innovations to reduce marginal costs and gain competitive advantage.
D
Increase production along with other industries expanding output without a change in cost per unit.
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