Which of the following best describes a plant operating at capacity?Multiple ChoiceEvery machine and person in the plant is working at the maximum possible rate.Fixed costs will need to change to accommodate increased demand.Only some specific machines or processes are operating at the maximum rate possible.Managers should produce those products with the highest contribution margin in order to deal with the constrained resource.

Multiple Choice QuestionExcess capacity is best described as underused plant resources that are a result of Blank______.Multiple choice question.a firm distinguishing its products through design, related services, quality, or pricean industry in which the top four firms are monopolistically competitivea concentration of industry competitiveness combined with an increase in market sharea firm producing less output than what is associated with achieving minimum average total cost

The capacity utilisation rate is determined by the ratio of best operating level and capacity used.Group of answer choicesTrueFalse

Multiple Choice QuestionWhich of the following best exemplifies a firm with excess capacity?Multiple choice question.A fast-food restaurant where customers never have to wait to place an order.An auto plant running three full shifts per day to meet customer orders.A convenience store with all its gas pumps in use and customers waiting to gas.A hotel with no rooms for the night.

When resources are allocated in such a way that it is possible to increase the production of one good without decreasing the production of another, then the allocation of resources is:Multiple choice question.inefficient.optimal.efficient.possible.

Select all that applyWhich of the following are true?Multiple select question.If multiple products use the manufacturing facilities in many different ways, a plantwide rate is ideal.The choice of whether to use a plantwide rate or departmental rates depends on the products and the production process.If the company manufactures products that are quite similar and that use the same set of resources, the plantwide rate is probably sufficient.Managers need to choose between plantwide and departmental rates based on the costs and benefits of each.