Firms Operating at 100% Capacity

question 72

Multiple Choice

Firms operating at 100% capacity

• A) are common.
• B) are the exception rather than the rule.
• C) have no fixed costs.
• D) have no variable costs.

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Definitions:

Output/Input

A ratio that measures the efficiency of production or performance by comparing what is produced (output) to what is consumed or used (input).

Continuous-Process Production

A manufacturing process that produces goods continuously rather than in discrete batches, often used in industries like chemicals, oil, and gas.

Chemical Plants

Facilities where chemical processes are conducted on an industrial scale, primarily for the production of chemicals and materials.

Oil Refineries

Industrial plants where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel, and jet fuel.