If a firm is operating at its full capacity, any increase in sales will require _____.
A) economies of scale
B) financing feedbacks
C) spontaneously generated funds
D) additional assets
E) financing adjustments

Question

Quizplus · Accepted Answer

If a firm is already operating at full capacity, it would require additional assets such as machinery, equipment, or labor to increase its sales. This is because the existing assets are already being utilized to their maximum capacity, and increasing sales would lead to a shortage of resources to meet the demand. Therefore, the firm would require additional assets to meet the increased demand for its products or services.

If a Firm Is Operating at Its Full Capacity, Any