If a monopolistically competitive firm has excess capacity
A) it is experiencing diseconomies of scale.
B) it produces a level of output that places it on the negatively sloped portion of its average total cost curve.
C) it is producing beyond the minimum efficient scale.
D) it has exhausted all economies of scale.
B
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In the economic way of thinking, capital contributes to
A) the exploitation of labor. B) wealth. C) greed. D) macroeconomic inefficiency. E) none of the above.
The minimum point of the _____ curve is called the shutdown price
a. average-fixed-cost b. marginal cost c. average -total-cost d. total fixed cost e. average-variable-cost
Which of the following is not a common characteristic of oligopolistic firms?
a. high barriers to entry b. mutual interdependence c. a large number of sellers d. nonprice competition
If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good
a. True b. False Indicate whether the statement is true or false