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Economic Definition of constant-cost industry. Defined.

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Term constant-cost industry Definition: A perfectly competitive industry with a flat, or perfectly elastic long-run industry supply curve that results because expansion of the industry has no affect on production cost or resource prices. For a constant-cost industry the entry of new firms, prompted by an increase in demand, has no affect on the long-run average cost curve of each firm nor its minimum efficient scale of production.


« constant returns to scale | constrained utility maximization »


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