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middle product (D2)<br />A semi-finished good requmng further processing before being suitable for final consumption. It is both an output of a productive process and an input to another. Much of the trade between subsidiaries of a MULTINATIONAL company is of this kind.<br /><em>See also:</em> intermediate good <br /><em>Reference</em><br />Sanyal, K. and Jones, R.W. (1982) 'The theory of trade in middle products', American Economic Review, 72: 16-31.
excess capacity (DO)<br />1 In competitive theory, a level of output below that level of output which minimizes average total cost. 2 More generally, any output level less than the maximum amount technically possible.<br /><em>See also:</em> X-efficiency
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