Q.
1
Assertion (A): There exists excess capacity of the production for the firms if these incur losses
Reasoning (R): Their production level has to remain below their economic capacity level
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A
Both (A) and (R) are correct but (R) is not the right explanation of (A)
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B
(A) is incorrect but (R) is correct
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C
Both (A) and (R) are correct and (R) is the right explanation of (A)
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D
(A) is correct but (R) is incorrect