A Firm Has Excess Capacity If Its Output Is

question 131

Multiple Choice

A firm has excess capacity if its output is

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

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Definitions:

Kyphosis

A spinal disorder leading to an excessive outward curve of the spine, causing a hunchback or slouching posture.

Posterior Curvature

Refers to the backward curve of a spinal column or another anatomical structure, which can be a normal or abnormal physiologic feature.

Diminished Energy

A reduction in one's normal level of vitality or strength, often described in medical contexts as fatigue or lethargy.

Low-pitched

Sound that is deep or rich in tone, indicating a frequency at the lower end of the audible spectrum.