Final answer:
In a capital-intensive industry with excess capacity, price increases are less likely.
Step-by-step explanation:
In a capital-intensive industry with excess capacity, all of the following are true except for B. price increases will be more likely.
When a firm operates in a capital-intensive industry with excess capacity, it means that there is an oversupply of production facilities and equipment relative to the demand for goods or services. In this scenario, firms may face difficulty in increasing prices because there is intense competition due to excess capacity. Increased supply of goods or services can lead to price decreases instead of increases.
In addition, excess capacity often leads to lower production costs, which can further discourage price increases. Firms may need to lower prices to attract customers and utilize their excess capacity effectively.
Therefore, option B is incorrect as price increases are less likely in a capital-intensive industry with excess capacity.