If a firm has excess capacity, it means question 7 options: a. that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. b. that the firm is not producing its minimum efficient scale of output. c. that the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. d. that the firm's quantity supplied exceeds its quantity demanded

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer