A Short-Run Increase in Capacity Utilization

question 20

Multiple Choice

A short-run increase in capacity utilization

• A)Shifts the production possibilities curve rightward.
• B)Shifts the production possibilities curve leftward.
• C)Moves the economy to a point closer to its existing production possibilities curve.

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Definitions:

Decision Trees

A decision support tool that uses a tree-like model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

Uncertainty of Demand

The unpredictability associated with the future demand for a product or service, making planning and forecasting challenging.

Flexible Production Capacity

The ability of a manufacturing process to adapt and respond to changes in demand by varying the amount of products produced without sacrificing efficiency or incurring significant costs.

Price

The amount of money required to purchase a product or service.