What Does It Mean If a Firm Has Excess Capacity

question 122

Multiple Choice

What does it mean if a firm has excess capacity?

• 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.

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Definitions:

VALS Typology

A psychographic segmentation tool that categorizes consumers into eight distinct types based on their values, attitudes, and lifestyles.

Achiever

An individual who shows a high level of accomplishment or success, particularly in setting and reaching goals.

Survivor

An individual who has remained alive or continued to exist, especially after facing a dangerous situation or overcoming significant hardship.

VALS

A psychographic tool used to categorize consumers into types based on their values, attitudes, lifestyles, and demographics.