A Firm Is Said to Have Excess Capacity When It

question 138

Multiple Choice

A firm is said to have excess capacity when it produces the amount of output

• A) such that marginal revenue is greater than marginal cost.
• B) such that price is greater than marginal cost.
• C) smaller than that which minimises average total cost.
• D) larger than that which minimises average total cost.

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Definitions:

Negligent Misrepresentation

A false statement made by one party to another, where there was no intention to deceive but due to carelessness, leading to damages or losses.

Skills

The ability to perform tasks or duties effectively based on knowledge, experience, and competence.

Competence

The ability of an individual to perform a job or task correctly, or in legal terms, the capacity to stand trial or make legally binding decisions.

Nondisclosure

An agreement in which one party agrees to keep certain information confidential and not to share it with third parties.