Which of the Following Factors in an Industry Is Most

question 54

Multiple Choice

Which of the following factors in an industry is most likely to cause excess capacity?

• A)Technologically outdated production units
• B)High customer demand
• C)Increasing age of a company's physical assets
• D)Lack of competition from new entrants
• E)Limited number of outlets in certain locations

---

Definitions:

Standby Seats

Airline or event tickets made available last minute, typically at a lower price, for customers willing to wait for no-shows or extra capacity.

Full Capacity

The maximum level of output that a facility can produce under normal operating conditions.

Marginal Cost

The increase in total production costs from making one additional unit of a product or service.

Producing Unit

An individual entity, such as a factory or company, involved in the production of goods or services.