Which of the Following Forms of Capacity Can Only Be

question 21

Multiple Choice

Which of the following forms of capacity can only be determined AFTER the completion of activities?

• A)Demonstrated capacity
• B)Maximum capacity
• C)Design capacity
• D)Effective capacity

---

Definitions:

Average Fixed Cost

The fixed costs of production (expenses that do not change with the level of output) divided by the quantity of output produced.

Output

The total quantity of goods and services produced by an economy or a firm.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, a measure of per unit cost.

Marginal Cost

The cost of producing one additional unit of a good or service, which can vary depending on the level of production.