Andrea owns We Help, a concierge company with 63 employees providing everyday services such as walking dogs, running errands such as going to the post office, paying bills, and picking up groceries from supermarket. Andrea realizes that the economic momentum is slowing down.Major corporations that were her regular clients have trimmed their budgets and are not using her services any longer.Andrea now has more employees than she needs.This situation is an example of _____.

Question

Quizplus · Accepted Answer

This is an example of idle production capacity at Andrea's company.Idle production capacity is formally defined as a situation when the supply of a service exceeds its demand.

Andrea Owns We Help, a Concierge Company with 63 Employees