Capacity surpluses result in (i) product prices and (ii) profit margins. (i) (ii)

Name: Capacity surpluses result in (i) product prices and (ii) profit margins. (i) (ii)
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Question

Quizplus · Accepted Answer

Capacity surpluses typically lead to lower product prices due to increased competition and excess supply. This, in turn, often results in lower profit margins as companies reduce prices to stimulate demand and compete for market share.

Capacity Surpluses Result in (I) Product Prices and (Ii) Profit