Excess capacity is best described as underused plant resources that are a result of _____

Inhaltsverzeichnis Show

What does excess capacity mean quizlet?
Is excess capacity wasteful under monopolistic competition?
What is excess capacity in monopolistic competition?
Which of the following best describes the idea of excess capacity in monopolistic competition?

Krugman's Economics for AP

2nd EditionDavid Anderson, Margaret Ray

1,048 solutions

Principles of Economics

8th EditionN. Gregory Mankiw

1,337 solutions

Krugman's Economics for AP

2nd EditionDavid Anderson, Margaret Ray

1,006 solutions

Microeconomics

3rd EditionPaul Krugman, Robin Wells

312 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

Statistics for Business and Economics

13th EditionDavid R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams

1,692 solutions

Introductory Business Statistics

1st EditionAlexander Holmes, Barbara Illowsky, Susan Dean

2,174 solutions

Principles of Economics

7th EditionN. Gregory Mankiw

1,396 solutions

What does excess capacity mean quizlet?

If a firm has excess capacity, it means. that the firm is not producing its minimum efficient scale of output. In contrast with perfect competition, excess capacity characterizes monopolistic competition.

Is excess capacity wasteful under monopolistic competition?

Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.

What is excess capacity in monopolistic competition?

Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for. Context: It exists when marginal cost is less than average cost and it is still possible to decrease average (unit) cost by producing more goods and services.

Which of the following best describes the idea of excess capacity in monopolistic competition?

Which of the following best describes the idea of excess capacity in monopolistic competition? The output produced by a typical firm is less than what would occur at the minimum point on its ATC curve.