If a monopolistically competitive firm can increase its level of production and lower its average total cost of production at the same time then
a. the firm has a product-variety opportunity.
b. the firm has excess capacity.
c. the firm has a business-stealing opportunity.
d. the firm is producing a quantity of output higher than its efficient scale of production.
b
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Futures contracts differ from forward contracts in that
A) future contracts ensures you will receive a certain amount of foreign currency at a specified future date. B) future contracts bind you into your end of the deal. C) future contracts allow you to sell your contract on an organized futures exchange. D) future contracts are a disadvantage if your views about the future spot exchange rate are to change. E) futures contracts don't allow you to realize a profit of a loss right away.
In using regression analysis to estimate demand, which of the following problems is most directly a result of insufficient data?
A) the identification problem B) the problem of a low R2 C) the problem of high standard errors D) the problem of insignificant F-statistics