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Entry, Exit, and Supply Curves: Constant Costs

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Title:
Entry, Exit, and Supply Curves: Constant Costs
Description:

Some industries have a flat supply curve. These are called constant cost industries. Take domain name registration, to increase the supply of domain names, we must only increase the inputs by a negligible amount. That is why even as the internet expands so rapidly, it still costs only about $6 or $7 dollars to register a new domain name. By showing you how these industries respond to an increase in demand, we can explain why it’s a constant cost industry.

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Video Language:
English
Team:
Marginal Revolution University
Project:
Micro
Duration:
10:29
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