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The Restaurant Industry Is Characterized by Excess Capacity

Question 141

Multiple Choice

The restaurant industry is characterized by excess capacity.This means that:


A) restaurants are producing more than their profit-maximizing level.
B) the profit-maximizing level is less than the level that minimizes average total costs.
C) restaurants are producing less than their profit-maximizing level.
D) the quantity of restaurant meals supplied exceeds the quantity of restaurant meals demanded.

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