A firm is said to have excess capacity when it produces the amount of output

Name: A firm is said to have excess capacity when it produces the amount of output
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Excess capacity refers to the situation where a firm is producing at a level of output that is less than the level that minimizes average total cost. This means the firm could produce more at a lower average cost per unit but chooses not to, often due to insufficient demand.

A Firm Is Said to Have Excess Capacity When It