When a Firm Is Said to Have No Spare Capacity

question 55

Multiple Choice

When a firm is said to have no spare capacity, it:

• A) has no need for new employees.
• B) currently has no inventory available for sale.
• C) must issue new equity to grow.
• D)must increase fixed assets to increase sales.

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Definitions:

Octadecanal

An organic compound belonging to the aldehyde group with an 18-carbon chain.

Stearic Acid

A saturated fatty acid commonly found in animal and vegetable fats, used in various manufacturing processes.

Saponification

A chemical reaction involving the hydrolysis of esters in fats with alkali, resulting in the formation of soap and glycerol.

Tristearin

A triglyceride derived from glycerol and three units of stearic acid, commonly found in fat and oils.