Excess Capacity Is

question 338

Multiple Choice

Excess capacity is

• A)an example of the inefficiencies of monopolistically competitive markets.
• B)a short-run problem but not a long-run problem.
• C)a characteristic of rising average total cost curves.
• D)Both a and b are correct.

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Definitions:

Reye's Syndrome

A rare but serious condition that causes swelling in the liver and brain, often occurring in children recovering from a viral infection who have been given aspirin.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the muscles and glands, influencing functions like heart rate and digestion.

Sympathetic

Pertaining to the sympathetic nervous system, which readies the body for action, or showing feelings of pity and sorrow for someone else's misfortune.