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Excess capacity best describes the fact that
a. monopolistically competitive firms produce less than the cost-minimizing level of output
b. monopolistically competitive firms produce more than the cost-minimizing level of output
c. monopolistically competitive firms produce exactly the cost-minimizing level of output, but the monopolistically competitive industry produces more than that amount.
d. monopolistically competitive firms could produce less if they wanted to, so they produce over the optimal capacity.
e. perfectly competitive firms produce less than the cost-minimizing level of output, so they have excess capacity but monopolistically competitive firms do not
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