The failure to produce enough to minimize average total cost is termed:

A) economic profits.
B) excess capacity.
C) advertising.
D) excess production.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue, often indicating the degree of profitability beyond normal expectations.

Excess Capacity

A situation where a company can produce more goods than the market demands, often leading to inefficiencies.