Excess Capacity Is

question 338

Multiple Choice

Excess capacity is

• A)an example of the inefficiencies of monopolistically competitive markets.
• B)a short-run problem but not a long-run problem.
• C)a characteristic of rising average total cost curves.
• D)Both a and b are correct.

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Definitions:

Neutral Behavior

Actions or responses that are neither particularly positive nor negative, often indicating a state of impartiality.

Competitive

A state or attitude involving rivalry, where individuals or groups strive to achieve a goal that cannot be shared or where achieving the goal by one means others do not.

Bilateral Threats

Situations or scenarios where two parties or nations pose mutual threats to each other's security or interests.

Unilateral Threats

Actions or statements made by one party intended to intimidate or coerce another, without seeking mutual agreement or negotiation.