Based on Its Existing Sales, What Is the Formula for Calculating

question 19

Multiple Choice

Based on its existing sales, what is the formula for calculating the full-capacity sales of a firm?

• A)Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate existing sales level
• B)Full-capacity sales = Future sales level ÷ (1 - Percent of capacity used to generate existing sales level)
• C)Full-capacity sales = Future sales level ÷ Percent of capacity used to generate existing sales level
• D)Full-capacity sales = Future sales level ÷ (1 + Percent of capacity used to generate existing level of assets)
• E)Full-capacity sales = Existing sales level ÷ (1 - Percent of capacity used to generate existing level of assets)

---

Definitions:

Nonrival

A property of a good or service where its consumption by one individual does not reduce availability for others, often found in public goods.

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission or payment.

Rival

An entity competing against another in the same market, striving for a greater share of assets, customers, or recognition.