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Answer to Question #222190 in Microeconomics for Shivam

Question #222190
Excess capacity linked to
1
Expert's answer
2021-08-03T12:22:56-0400

Excess capacity linked to over-investment, repressed demand, technological improvement, and external shocks such as a financial crisis among other components.

Excess capacity occurs when a firm operates or is producing output at less than the optimum level.


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