The Excess Capacity Theorem States That

question 17

Multiple Choice

The excess capacity theorem states that

• A)society is worse off with fewer monopolistic competitors.
• B)costs of production under monopolistic competition can be lowered by reducing the number of producers.
• C)lack of excess capacity leads to shortages during periods of unexpected growth in demand for goods produced by monopolistic competition.
• D)there is too much choice in our economy.

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Definitions:

Urban Planning

The process of designing and regulating the use of space within urban areas, focusing on the development and implementation of plans for land use, built environment, and infrastructure to improve the quality of life in cities.

Treadmill of Production

A theory in environmental sociology suggesting that constant economic growth leads to increasing resource extraction and environmental degradation.

Greenhouse Effect

The process in which increased production of greenhouse gases, especially those arising from human activity (e.g., carbon dioxide, nitrous oxide, and methane) causes changes to the earth’s atmosphere.

Analytic Subfield

A specific area of study within a larger discipline that focuses on analytical techniques or methodologies.