When a Firm Operates with Excess Capacity

question 51

Multiple Choice

When a firm operates with excess capacity,

• A)additional production would lower the average total cost.
• B)additional production would increase the average total cost.
• C)it must be a perfectly competitive firm.
• D)it must be a monopolistically competitive firm.

---

Definitions:

Question-and-Answer

An interactive format used to address and clarify inquiries by providing responses to specific questions, facilitating understanding.

Conclusion

The final part of a document or speech that summarizes the main points or presents a final judgment.

Effective Speaking

The ability to communicate verbally in a way that is clear, persuasive, and engaging, achieving the desired impact on the audience.

Good Speakers

Individuals who possess the ability to effectively communicate and engage with their audience through spoken word.