Excess Capacity

question 122

Multiple Choice

Excess capacity:

• A)is a characteristic of rising average total cost curves
• B)is solely a characteristic of mark-up pricing
• C)tells economists little about the desirability of a market outcome
• D)is the primary source of market inefficiency in monopolistically competitive markets

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Definitions:

Truth Table

A chart employed in logic to ascertain if a proposition is valid by cataloging every conceivable situation and their respective truth or falsity.

Atomic Sentences

Simple sentences that cannot be broken down into smaller parts while maintaining meaning.

Truth Values

The valuation in logic that shows the relation of a statement to the truth, typically classified as either true or false.

Truth Table

A mathematical table used in logic to determine the truth values of logical expressions based on their operators.