The firm in the above figure has excess capacity of ________ meals per day.
A) 0
B) between 1 and 10
C) between 11 and 20
D) more than 21 and 30
E) more than 31

Question

Quizplus · Accepted Answer

The firm's maximum capacity is 120 meals per day (80 capacity in the kitchen and 40 in the dining room). However, the firm is only producing and selling 100 meals per day. Therefore, the excess capacity is 20 meals per day (120 - 100).

The Firm in the Above Figure Has Excess Capacity of ________