A Monopolistically Competitive Firm Is Considered to Have Excess Capacity

Multiple Choice

A monopolistically competitive firm is considered to have excess capacity because it:

A) does not operate at the minimum point on its long-run average cost curve.
B) does not operate at the minimum point on its marginal cost curve.
C) operates at the point where average cost is greater than average revenue.
D) operates at the point where marginal cost is above average revenue.