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Capacity Utilization Measures Current Manufacturing Output Against Potential Output

Question 82

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 plant and equipment
B) As capacity utilization increases,companies bring less efficient plant and equipment on line
C) When the capacity utilization rate moves above 80 percent,inflationary pressures may start to build in the economy
D) All of the above are true

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