Multiple Choice
Excess capacity results from a
A) downward-sloping demand curve and a U-shaped ATC curve.
B) downward-sloping demand curve and no fixed costs.
C) horizontal demand curve and an upward-sloping marginal cost curve.
D) perfectly inelastic demand curve and a downward-sloping ATC curve.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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