If a Monopolistically Competitive Firm Has Excess Capacity

question 252

Multiple Choice

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:

Suspected Crime

An act believed to potentially be criminal based on preliminary evidence or suspicion but not yet legally proven.

Search Warrant

A legal document authorized by a judge or magistrate, allowing law enforcement to conduct a search of a premises for evidence of a crime.

Plea Bargaining

The process by which the accused and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case, subject to court approval. Usually, plea bargaining involves the defendant's pleading guilty to a lesser offense in return for a lighter sentence.

Petty Larceny

A minor theft crime involving the stealing of property with relatively low value.