Excess capacity is not found under

1.	Excess capacity is not found under
Answer» Perfect competition Excess CAPACITY is not found under Perfect competition. Under perfect competition, each firm PRODUCES at the MINIMUM point on its LAC curve and its horizontal demand curve is tangent to it at that point. Its OUTPUT is ideal and there is no excess capacity in the long-run.

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Perfect competition

Excess CAPACITY is not found under Perfect competition. Under perfect competition, each firm PRODUCES at the MINIMUM point on its LAC curve and its horizontal demand curve is tangent to it at that point. Its OUTPUT is ideal and there is no excess capacity in the long-run.

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Excess capacity is not found under

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