If a Firm Has Excess Capacity, Then

Multiple Choice

If a firm has excess capacity, then

A) the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales.
B) the firm is not producing its minimum efficient scale of output.
C) the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity.
D) the firm's quantity supplied exceeds its quantity demanded.