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.

---

Definitions:

Physical Aggressive

pertains to behaviors that are intended to cause harm or physical injury to another person.

Dominance Seeking

The behavior or tendency to assert control or influence over others, often seen in social and hierarchical contexts.

Degrouping

A general decline in the importance of cliques over the course of the high school years.

Middle Adolescence

This stage, often occurring between ages 15 to 17, is characterized by increased independence, identity exploration, and emotional and social development.