Which of the Following Is Correct

question 190

Multiple Choice

Which of the following is correct?

• A)The excess capacity problem diminishes as the monopolistically competitive firm's demand curve becomes less elastic.
• B)The excess capacity problem means that monopolistically competitive firms typically produce at some point on the rising segment of their average total cost curve.
• C)The greater the degree of product variation, the lesser is the excess capacity problem.
• D)The greater the degree of product variation, the greater is the excess capacity problem.

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Members of the Council of Economic Advisers, a group of economists who advise the President of the United States on economic policy.

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