Which of the Following Is a Limiting Factor for Capacity

question 257

Multiple Choice

Which of the following is a limiting factor for capacity expansion?

• A) Government pressure on organizations to increase or maintain employment.
• B) Production orientation of management.
• C) Lack of credible market leader in the industry.
• D) Company diversification.

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Definitions:

Allocative Efficiency

A state of resource allocation where resources are distributed according to consumer preferences, often considered an optimal distribution of goods and services.

Prisoners' Dilemma

A scenario in game theory that demonstrates why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Repeated Games

A strategic situation in which the same game is played several times by the same participants, allowing for the development of strategies based on past outcomes.

Contestable Markets Model

An economic concept suggesting that a market is competitive if entry and exit costs are low, even if it is dominated by a few firms.