If a Monopolistically Competitive Firm Has Excess Capacity

question 208

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 a level of output that places it on the negatively sloped portion of its average total cost curve.

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