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:

Proenzyme

An inactive precursor of an enzyme, which requires a biochemical change to become active.

Active Enzyme

An enzyme in a form in which it can catalyze its specific biochemical reaction.

Protein

Complex molecules made up of amino acids that are essential for various bodily functions, including tissue repair, nutrient transport, and enzyme activity.

Cytoplasmic Receptor

A type of receptor found within the cytoplasm of a cell that binds to specific ligands, leading to changes in cell function.