Multiple Choice
Capacity utilization measures current manufacturing output against potential output. Which of the following statements is correct?
A) When capacity utilization is low, companies use their most productive and efficient plants and equipment.
B) As capacity utilization increases, companies bring less efficient plants and equipment on line.
C) When the capacity utilization rate moves above 80%, inflationary pressures may start to build in the economy.
D) All of the above are true
Correct Answer:
Verified
Correct Answer:
Verified
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