According to the Excess Capacity Theorem, If Every Firm Under

question 34

Multiple Choice

According to the excess capacity theorem, if every firm under monopolistic competition expanded its output,

• A)cost per unit of output would rise.
• B)social benefits would increase.
• C)cost per unit of output would decrease.
• D)MC and AC would remain unchanged.

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CCA Class

Refers to the categories under the Canadian tax system specifying the depreciation rate that can be claimed on assets for tax purposes.

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A reduction in taxable income for an individual or corporation achieved through allowable deductions such as mortgage interest, medical expenses, or depreciation.

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The financial benefit that results from leasing an asset rather than purchasing it, taking into account all costs and savings.