If marginal cost is below average cost, setting prices at what look like 'best practice' levels makes them closer to marginal cost and hence reduces the incentive for oversupply.
The oversupply of doctorates reflected a larger crisis within the university, where a good many graduating students could not find employment in their field of training.
The exceptional production and oversupply of physicians shows that there are now about 24,000 practicing physicians, with an estimated 28,000 in the year 2000, and 34,000 in 2010.
Also, while the market for organic products is increasing rapidly, it is also immature, and some markets may be sensitive to oversupply and prices may be highly variable.
A decline in the birth rate in the late 1970s led to an oversupply of day-care facilities.
It has prevented oversupply and stimulates effective use of the technologies concerned.
However, only 6% of the population of organic producer-handlers reported critical oversupply of organic products to their customers in 2004.
For example, parents seeking economic advantage for their male offspring may find that they contribute to an oversupply of male offspring, making each less valuable.
