A Firm Is Said to Have Excess Capacity When It

question 88

Multiple Choice

A firm is said to have excess capacity when it produces the amount of output

• A) such that price is greater than marginal cost.
• B) such that marginal revenue is greater than marginal cost.
• C) smaller than that which minimizes average total cost.
• D) larger than that which minimizes average total cost.

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Definitions:

Uplifted

Refers to regions of the Earth’s crust that have been raised vertically, often due to tectonic processes.

Asthenosphere

The semi-fluid layer of the Earth's mantle beneath the lithosphere which allows for plate movement and is involved in convective processes within the Earth.

Lithosphere

The rigid outer layer of the Earth, comprising the crust and the upper part of the mantle.

Mantle

The layer of the Earth located between the crust and the outer core, composed of silicate rocks that are rich in magnesium and iron.