When there is a lot of unused capacity in an industry, the prices tend to be higher so that the suppliers can make up their lost margin.

Name: When there is a lot of unused capacity in an industry, the prices tend to be higher so that the suppliers can make up their lost margin.
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Question

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When there is a lot of unused capacity, prices tend to be lower due to excess supply and competition among suppliers to utilize their capacity, leading to price reductions to attract customers.

When There Is a Lot of Unused Capacity in an Industry