Production Capacity Refers to

question 15

Multiple Choice

production capacity refers to

• A) the minimum number of customers that a service provider can serve and still remain profitable.
• B) the maximum number of customers that a service provider must serve in order to remain profitable.
• C) the ability of a service provider to redirect its efforts so even when there is no primary demand, employees are still able to meet selective demand.
• D) a situation that occurs when a service provider is available but there is no demand for the service.
• E) a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.

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Definitions:

Efficient Equilibrium

A state in which resources are allocated in the most efficient manner, leaving no potential for reallocating resources to make someone better off without making someone else worse off.

Government

A system or group of people governing an organized community, often a state, and set policies, laws, and regulations.

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.