If a Firm Has Excess Production Capacity, It

question 134

Multiple Choice

If a firm has excess production capacity, it

• A) can serve as a safety net if demand suddenly picks up.
• B) may be a sign that there's too much competition.
• C) may make sense for the marketing manager to try to find new markets for current products.
• D) can be costly.
• E) All of these.

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Definitions:

Eyeball

The spherical organ of vision contained within the socket of the skull, comprising structures such as the cornea, lens, retina, and optic nerve.

Reticular Layer

The deeper layer of the dermis, composed of dense irregular connective tissue containing collagen and elastin fibers.

Hypodermis

The deepest layer of the skin, consisting of fat and connective tissues that insulate the body and protect underlying muscles and other structures.

Dermal Papilla

A small, nipple-like extension of the dermis into the hair follicle, containing capillaries that nourish the hair.