Figure 13-6 -Refer to Figure 13-6.What is the amount of excess capacity? A) Q₄ - Q₃ units B) Q₄ - Q₂ units C) Q₃ - Q₂ units D) Q₃ - Q₁ units

Question

Quizplus · Accepted Answer

Excess capacity is the difference between the maximum possible output (Q₄) and the actual output level (Q₂), which is equal to Q₄ - Q₂ units. Therefore, option B is the correct answer.

Figure 13-6 -Refer to Figure 13-6.What Is the Amount of Excess Capacity