A Firm Is Said to Have Excess Capacity When It

question 88

Multiple Choice

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

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

Understand the specific risks associated with hypertension and ways to manage it.

Acknowledge the influence of smoking and secondhand smoke exposure on cardiovascular disease.

Comprehend the protective effects of certain diets and nutrients against cardiovascular disease.

Recognize the importance of social support and mental health in cardiovascular disease risk.

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Definitions:

Operating Assets

Assets that a business uses for its day-to-day operational activities to generate revenue, excluding investment and non-operational assets.

Return on Investment

A financial ratio that calculates the profitability of an investment by dividing the net profit by the initial cost of the investment.

Controllable Margin

The portion of profit or income that a manager can directly influence by controlling costs or increasing sales.

Invested Capital

Funds invested in a company by the shareholders and lenders, used for the purchase of assets and operation of the company, aiming for business growth and profitability.