Excess Capacity Results from a

question 90

Multiple Choice

Excess capacity results from a

• A)downward-sloping demand curve and a U-shaped ATC curve.
• B)downward-sloping demand curve and no fixed costs.
• C)horizontal demand curve and an upward-sloping marginal cost curve.
• D)perfectly inelastic demand curve and a downward-sloping ATC curve.

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Definitions:

Diversion

The fallacy of trying to support one proposition by arguing for another proposition.

Argument

A rationale or series of arguments presented with the goal of convincing others of the validity or fallacy of a certain action or idea.

Appeal to Ignorance

A fallacy that asserts a proposition to be true because it has not been proved false or vice versa.

Atlantis

A mythical island nation mentioned in Plato's works, "Timaeus" and "Critias," as a powerful and advanced civilization that purportedly sank into the ocean in a single day and night of misfortune.