Economy, asked by canindita, 30 days ago

what is built in reserve capacity?

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Answered by jenidiya

0

Answer:

The Modern theory suggests the existence of 'built- in- reserve capacity 'which imparts flexibility and enables the plant to produce larger output without adding to the costs. Built –in- reserve capacity are planned by firms. ... The Planned reserve capacity explains the 'Saucer – shaped' short run average variable costs.

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