When Demand Exceeds Capacity, All of the Following Are Reasonable

question 192

Multiple Choice

When demand exceeds capacity, all of the following are reasonable options for the firm except

• A) operating overtime hours to meet the demand.
• B) starting a second or third shift.
• C) subcontracting part of the work to other producers.
• D) turning away some long-time customers.
• E) expanding the capacity of the current facility.

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Definitions:

Earnings Differential

The difference in earnings between two or more groups, typically based on factors such as education, experience, occupation, or gender.

Mean Earnings

The average income earned by an individual, group, or population within a specified time period, calculated by dividing the total income by the number of earners.

Human Capital

The collective skills, knowledge, and experiences of an organization's or society's workforce, considered as an asset or economic value.

Employment Discrimination

The unfair treatment of employees or job applicants based on characteristics such as race, gender, or age, rather than job performance or qualifications.