Excess Capacity Typically Occurs

question 24

Multiple Choice

Excess capacity typically occurs

• A)in the short run in perfect competition
• B)in the short run in monopolistic competition
• C)in long-run equilibrium in perfect competition
• D)in long-run equilibrium in monopolistic competition
• E)usually in markets experiencing an increase in demand

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Definitions:

Flux

A state of continuous change, movement, or transformation.

Norms

Norms are shared expectations and rules that guide behavior within a society, acting as informal guidelines on what is considered acceptable.

Shared Rules

Commonly agreed-upon guidelines or principles that govern behavior within a group or society, similar to norms.

Behavior

Actions or reactions of an individual or group in response to external or internal stimuli, observable through various forms of expression.