According to the Excess Capacity Theorem, If Every Firm Under

question 34

Multiple Choice

According to the excess capacity theorem, if every firm under monopolistic competition expanded its output,

• A)cost per unit of output would rise.
• B)social benefits would increase.
• C)cost per unit of output would decrease.
• D)MC and AC would remain unchanged.

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Definitions:

ΔH°

The standard enthalpy change of a reaction, measured under standard conditions (1 bar, 298.15K), representing the heat absorbed or released.

Bond Dissociation Energy

The energy required to break a particular bond in a molecule to form neutral atoms, usually measured in kilojoules per mole (kJ/mol).

Carbon-chlorine Bond

A chemical bond between carbon and chlorine atoms, common in organic chemistry, particularly in the manufacture of solvents and pesticides.

Transition State

A high-energy, temporary state in a chemical reaction where reactants are converted into products.