Excess capacity refers to the
A) amount by which actual production falls short of the minimum ATC output.
B) fact that entry barriers artificially reduce the number of firms in an industry.
C) differential between price and marginal costs that characterizes monopolistically competitive firms.
D) fact that most monopolistically competitive firms encounter diseconomies of scale.
Correct Answer:
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Q41: In long-run equilibrium, monopolistic competition entails
A) an
Q42: Monopolistically competitive firms
A) realize normal profits in
Q43: Which of the following statements is correct?
A)
Q44: In long-run equilibrium, both purely competitive and
Q45: Answer the question on the basis
Q47: Long-run equilibrium for a monopolistically competitive firm
Q48: In the long run, the price charged
Q49: In the long run, the price charged
Q50: Other things equal, if more firms enter
Q51: When a monopolistically competitive firm is in
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