Indu Dhiman posted an Question
October 13, 2021 • 00:05 am 30 points
  • UGC NET
  • Economics

With which of the following is the doctrine of excess capacity in the long run not associated ?

with which of the following is the doctrine of excess capacity in the long run not associated ?

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  • Rucha rajesh shingvekar best-answer

    There is no excess capacity in the long run for perfectly competitive markets. 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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