Tag: demand curve

Entry, Exit, and Supply Curves: Constant Costs

Entry, Exit, and Supply Curves: Constant Costs

♪ [music] ♪ – [Alex] Okay — this talk is going to be a bit more involved. What we’re going to show is how a constant cost industry generates a flat supply curve. Let’s begin. A constant cost industry is one where it’s very easy to expand output without pushing up costs. So for example, …