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Author Question: Which of the following correctly states the main prediction of the excess-capacity theorem? (Read 41 times)

olsonmanny@gmail.com

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on: Oct 12, 2022
Which of the following correctly states the main prediction of the excess-capacity theorem?
◦ When price-taking firms maximize their profits by setting price equal to marginal cost, each firm operates with some excess capacity.
◦ Monopolistic firms will achieve positive economic profits by restricting output below the economically efficient level at which average total costs are minimized.
◦ Profit-maximizing firms will always choose to operate with some degree of excess capacity, in order to be flexible in the face of shifts in demand.
◦ Long-run equilibrium in a monopolistically competitive industry occurs with all firms producing at a lower output level than that which minimizes average total costs.
◦ All firms in a perfectly competitive industry will produce at a lower output level than that which minimizes average total costs.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by olsonmanny@gmail.com on Oct 12, 2022

dadgoere765

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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olsonmanny@gmail.com

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Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it

Jsherida

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Reply 3 on: Yesterday
Excellent

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