πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!


    ⚑ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚑
    00:00:00 AM Left

    Question

    When a firm operates with excess

    capacity
    A it must be a perfectly competitive firm Correct Answer Incorrect Answer
    B it must be a monopolist Correct Answer Incorrect Answer
    C it must be a monopolistically competitive firm Correct Answer Incorrect Answer
    D additional production would increase the average total cost Correct Answer Incorrect Answer
    E additional production would lower the average total cost Correct Answer Incorrect Answer

    Solution

    Additional production lowers the average total cost when firm operates with excess capacity.

    Practice Next
    More Research Questions
    ask-question