A Firm Has Excess Capacity If Its Output Is

question 317

Multiple Choice

A firm has excess capacity if its output is

• A) less than the quantity at which marginal cost is minimized.
• B) less than the quantity at which economic profit is maximized.
• C) less than the quantity at which average total cost is minimized.
• D) more than the quantity at which average total cost is minimized.

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Definitions:

Competition

The rivalry between entities for dominance or achieving a goal, which can occur in markets, sports, academics, or any field of endeavor.

Win-lose Competition

A competitive scenario where one party's gain is directly correlated with the other's loss, emphasizing the zero-sum nature of some competitions.

Collaboration

The action of working with someone to produce or create something, especially in a learning or professional context.

Cooperative

An entity or organization owned and operated for the mutual benefit of its members, sharing profits or benefits among participants.