What Does It Mean If a Firm Has Excess Capacity

Multiple Choice

What does it mean if a firm has excess capacity?

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