When Actual Production Is Below Practical Capacity, There Will Be

question 61

True/False

When actual production is below practical capacity, there will be unused-capacity cost only in the manufacturing function while unused capacity is not a factor in nonmanufacturing links of the value chair such as in the marketing function.

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Definitions:

Labor

Human effort used in production which can also include physical and mental effort.

Brain Drain

The emigration of highly trained or intelligent people from a particular country, often due to lack of opportunities or political instability.

Human Capital

The economic value of a person's experience and skills, including education, training, intelligence, skills, health, and other things employers value.

Low-income Countries

are nations with a gross national income (GNI) per capita below a certain threshold defined by international institutions like the World Bank.