When a firm operates with excess capacity,
a. additional production would lower the average total cost.
b. additional production would increase the average total cost.
c. it must be a perfectly competitive firm.
d. it must be a monopolistically competitive firm.
a
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Which of the following statements is TRUE?
A) At the efficient quantity, marginal social benefit equals marginal social cost. B) Marginal social cost increases as the quantity produced decreases. C) Marginal social benefit decreases as the quantity consumed decreases. D) If marginal social benefit exceeds marginal social cost by as much as possible, production is efficient.
Antitrust laws in the United States
A) are an attempt to foster competition. B) are not necessary in the twenty-first century. C) have not been used in the past twenty-five years. D) are the same as the laws in the European Union.