Excess Capacity Exists When a Firm Produces

question 48

Multiple Choice

Excess capacity exists when a firm produces

• A) more than the profit-maximizing level of output.
• B) less than the quantity that minimizes average total cost.
• C) less than the quantity that minimizes marginal cost.
• D) more than the quantity that minimizes marginal cost.
• E) None of the above answers is correct.

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