If a Firm Has Excess Capacity, It Means

question 155

Multiple Choice

If a firm has excess capacity, it means

• A)that the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales.
• B)that the firm is not producing its minimum efficient scale of output.
• C)that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity.
• D)that the firm's quantity supplied exceeds its quantity demanded.

---

Definitions:

Applied Behavior Analysis

A therapy based on the science of learning and behavior, which aims to improve socially significant behaviors.

Cognitive Skills

Mental abilities involved in the process of acquiring knowledge and understanding through thought, experience, and the senses, such as perception, reasoning, memory, and attention.

Treatment Expense

The cost associated with medical care, including diagnostics, therapy, medication, and other interventions necessary to treat or manage conditions.

Adolescent Suicide Rate

The statistical measure of the number of suicide deaths in a given population of adolescents, usually per 100,000 individuals per year.