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Which of the following BEST describes a possible construction hazard?
Excess Capacity
A scenario where a firm’s production capability exceeds the demand for its product, often leading to inefficiency and increased costs.
Product Variation
The process of making slight adjustments to a product's features, design, or offerings to differentiate it from competitors’ products.
Average Total Cost
The total cost of production divided by the number of units produced, representing the average cost per unit.
Economic Profit
A quantification of the surplus generated after subtracting both the explicit and implicit costs from total revenue, indicating the true profitability of a business.
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