Which of the Following Is True If a Monopolistically Competitive

question 230

Multiple Choice

Which of the following is true if a monopolistically competitive firm has excess capacity?

• A)it has exhausted all economies of scale.
• B)it is producing beyond the minimum efficient scale.
• C)it is experiencing diseconomies of scale.
• D)it produces an output rate that places it on the negatively sloped portion of its average total cost curve.

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Definitions:

Opponent Process Theory

A psychological and neurological model that explains a wide range of behaviors, including vision and emotions, by proposing that certain elements (e.g., colors or feelings) operate in opposition to each other.

Trichromatic Theory

A theory explaining color vision as a result of the eye containing three types of receptors sensitive to different light wavelengths.

Colour Vision

The ability of the eye and brain to distinguish objects based on the wavelengths of light they reflect, emit, or transmit.

Somatosensory Cortex

A part of the brain located in the parietal lobe that processes sensory information from the body, including touch, temperature, and pain.