Question: Does the firm have excess capacity in the long run? If the firm has excess capacity in the long run, why doesnt it decrease its

Does the firm have excess capacity in the long run? If the firm has excess capacity in the long run, why doesn€™t it decrease its capacity?
Use the following figure, which shows the situation facing a producer of running shoes

Does the firm have excess capacity in the long run?

MC 100 ATC 401 MR 50 100 150 200 250 Guantlty (poirs of running shoes per week)

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