Figure 10.17 -Refer to Figure 10.17.The amount of excess capacity is A)Q_h - Q_f units B)Q_j - Q_f units C)Q_j - Q_h units D)Q_h - Q_g units

Question

Quizplus · Accepted Answer

Excess capacity is the difference between the quantity produced at the minimum point of the average total cost curve and the quantity produced at the profit-maximizing output level. This is represented by the distance between points j and f on the quantity axis in the given figure.

Figure 10.17 -Refer to Figure 10.17.The Amount of Excess Capacity Is