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Definitions from the Web

Constant Cost

Definition:

In economics, constant cost refers to a situation in which the cost of producing an item remains the same regardless of the level of output or the scale of production. In other words, the total cost and average cost per unit stay constant even with changes in the quantity produced.

Senses:

1. Noun: Constant cost refers to the fixed expenses incurred during production that do not vary with changes in output.

2. Adjective: Constant cost describes a situation where the cost per unit remains consistent, irrespective of the amount produced.

Examples:

1. Noun:

When calculating the profitability of their business, entrepreneurs need to consider both variable and constant costs.

2. Noun:

In the long run, a constant cost occurs for goods produced by competitive industries.

3. Adjective:

The firm enjoys a constant cost structure due to the stable prices of raw materials.

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