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Which of the Following Statements About the Capacity Utilization Rate

Question 132

Multiple Choice

Which of the following statements about the capacity utilization rate is false?


A) Generally,manufacturing firms use about 80 to 85 percent of their capacity.
B) Capacity utilization falls during recessions.
C) We will always have some idle plant and equipment because it would be virtually impossible to use every single factory,office and piece of equipment day in and day out.
D) The decreasing investment in overseas manufacturing facilities by U.S.multinational corporations has increased the significance of our capacity utilization rate.

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