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Svetradugi [14.3K]
3 years ago
13

Which of the following statements is NOT​ true? A. When capacity is​ inadequate, market share can shrink. B. When capacity is​ i

nadequate, customers can be lost. C. When excess capacity​ exists, cost can increase. D. When excess capacity​ exists, cost can decrease.
Social Studies
1 answer:
melomori [17]3 years ago
3 0

Answer:

C. When excess capacity​ exists, cost can increase

Explanation:

The only False statement in all the given four statement is option C that is When excess capacity​ exists, cost can increase.

Clearly, the above statement is false because when by the principle of economies of scale at higher capacity, the overall cost of production decreases. ( in simple terms, higher the supply, lesser will be the demand.)

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