Question

what happens to the firms supply curve if there is an excess capacity production​

Answer 1

Answer:

1) Excess capability indicates that demand for a product is a smaller amount than the quantity that the business probably might provide to the market.

2) once a firm is manufacturing at a lower scale of output than it's been designed for, it creates excess capability.

3) Excess capability conjointly might arise from mispredicting the market or allocating resources inefficiently.

4) healthy and financially balanced a company's management has to stay attuned to the realities of provide and demand.

5) So based on the nature of excess capacity production the firms supply curve varies drastically.