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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