Which of the Following Statements About the Capacity Utilization Rate

question 142

Multiple Choice

Which of the following statements about the capacity utilization rate is false?

• A)Generally,manufacturing firms use about 80 to 85 percent of their capacity.
• B)Capacity utilization falls during recessions.
• C)We will always have some idle plant and equipment because it would be virtually impossible to use every single factory,office and piece of equipment day in and day out.
• D)The decreasing investment in overseas manufacturing facilities by U.S.multinational corporations has increased the significance of our capacity utilization rate.

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