Which of the following gives consumers an incentive to reduce the consumption of a service when the cost of providing the service is the highest?

If a nation has full employment, it is in the:

a. Keynesian range of the aggregate supply curve. b. Intermediate range of the aggregate supply curve. c. Twilight zone of the aggregate supply curve. d. Classical range of the aggregate supply curve. e. Gibson-Paradox range of the aggregate supply curve.

Excess capacity refers to the:

A. amount by which actual production falls short of the minimum ATC output. B. fact that entry barriers artificially reduce the number of firms in an industry. C. differential between price and marginal costs that characterizes monopolistically competitive firms. D. fact that most monopolistically competitive firms encounter diseconomies of scale.