The Excess Capacity Theorem Holds for a (N) __________, and States

question 21

Multiple Choice

The excess capacity theorem holds for a (n) __________, and states that in the long run the firm produces an output __________.

• A)perfectly competitive firm; that is resource-allocative efficient
• B)monopoly firm; that is not resource-allocative efficient
• C)monopolistic competitor; smaller than the one that would minimize its costs of production
• D)oligopoly firm; larger than the one that would minimize its costs of production
• E)none of the above

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Definitions:

Lewis Theory

A concept in chemistry that explains chemical bonding based on the loss, gain, or sharing of electrons in the outermost shell of atoms or molecules.

Ionic Bond

A type of chemical bond formed through the electrostatic force between oppositely charged ions.

Electrons

Subatomic particles with a negative electric charge, found in all atoms and acting as the primary carrier of electricity in solids.

Valence Shells

Valence shells are the outermost shell of an atom that contains the electrons most likely to be involved in chemical reactions.