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Anna007 [38]
3 years ago
6

If a firm has excess capacity, it means Group of answer choices that the firm's quantity supplied exceeds its quantity demanded.

that the firm expands too much of its resources on advertising its product without seeing an appreciable increase in sales. that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. that the firm is not producing a quantity that minimizes its average cost per unit..
Business
1 answer:
rosijanka [135]3 years ago
5 0

Answer:

that the firm is not producing a quantity that minimizes its average cost per unit..

Explanation:

A firm has excess capacity if it is producing less amount of goods or services than it is supposed to produce. it is when marginal cost of production is less than average cost of production and average cost can still be reduced further by increasing the quantities produced.

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