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The Practical Capacity for a Particular Production Facility Is Best

Question 22

Multiple Choice

The practical capacity for a particular production facility is best described as:


A) The highest level of activity possible allowing for normal repairs and maintenance
B) The highest level of activity possible under any circumstance
C) The highest level of activity at which average costs are minimized
D) The level of activity that makes the most practical sense within the framework of a given situation

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