The Excess Capacity Theorem Holds for a (N) __________, and States

Multiple Choice

The excess capacity theorem holds for a (n) __________, and states that in the long run the firm produces an output __________.

A) perfectly competitive firm; that is resource-allocative efficient
B) monopoly firm; that is not resource-allocative efficient
C) monopolistic competitor; smaller than the one that would minimize its costs of production
D) oligopoly firm; larger than the one that would minimize its costs of production
E) none of the above