An expanding economy puts stress on the manufacturing ability of a company. When a firm turns business down during periods of economic expansion, a problem exists in the area of ________.

Question

Quizplus · Accepted Answer

When a firm turns business down during periods of economic expansion, it indicates that the firm is not able to meet the demand due to the lack of capacity utilization, which means that their manufacturing ability is not sufficient to fulfill the orders. Therefore, the problem exists in the area of capacity utilization. The other options may also play a role, but the given scenario specifically points towards capacity utilization.

An Expanding Economy Puts Stress on the Manufacturing Ability of a Company