A Firm Has Excess Capacity If

question 43

Multiple Choice

A firm has excess capacity if

• A)it produces above its efficient scale.
• B)it produces below its efficient scale.
• C)it produces the same level as its efficient scale.
• D)it sells some of its factors of production.
• E)it improves the quality of its factors of production.

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Definitions:

Shareholders

Individuals or institutions that legally own one or more shares of stock in a public or private corporation, giving them a stake in the company's ownership.

Conscious Marketing Principle

An approach to marketing that recognizes the broader impacts of actions on stakeholders and society, aiming for ethical and sustainable practices.

Environmentally Damaging

Something is environmentally damaging if it has a negative impact on the natural world, including pollution, habitat destruction, and contributing to climate change.

Child Labor

The employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially, or morally harmful.