Which of the following statements would be true about a firm that is operating under conditions of excess capacity?
A) The firm's average total cost would be at a minimum.
B) The firm's average total cost would not be at a minimum.
C) The firm's average total cost may or may not be at a minimum,but the firm would not be at capacity output.
D) The firm would not be at capacity output,but its average total cost would be at a minimum.
E) The firm would need to reduce output to achieve minimum average total cost.
Correct Answer:
Verified
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