firms have excess capacity.
A)1 only
B)2 and 3
C)1 and 2
D)3 only
E)1, 2, and 3

Name: firms have excess capacity. A)1 only B)2 and 3 C)1 and 2 D)3 only E)1, 2, and 3
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Question

Quizplus · Accepted Answer

Excess capacity occurs when firms produce less than their potential output. This can be due to various reasons such as decreased demand, inefficiencies, or strategic decisions. All options could potentially relate to firms having excess capacity.

Firms Have Excess Capacity