If a Company Has Excess Capacity, the Most It Would

question 3

Multiple Choice

If a company has excess capacity, the most it would pay for buying a product that it currently makes would be the

• A) total cost of producing the product.
• B) market value of the product.
• C) market value less usual markup on the product.
• D) total variable cost of producing the product.

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Definitions:

Current-Limiting

Describing devices or methods intended to limit the maximum current that can flow through a circuit, thus protecting the circuit from damage.

Impedance

A measurement of resistance to the flow of alternating current in a circuit, represented by the symbol Z and measured in ohms.

Power Factor

A comparison of the true power (watts) to the apparent power (volt-amperes) in an AC circuit.

Inductive Reactance

The opposition that inductors present to the flow of alternating current, due to the phase shift between voltage and current, measured in ohms.