The Level of Operating Capacity That Is Needed to Meet

question 161

Multiple Choice

The level of operating capacity that is needed to meet expected sales demand is called

• A) practical capacity.
• B) normal capacity.
• C) ideal capacity.
• D) excess capacity.

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Definitions:

Economic Efficiency

Economic efficiency occurs when a system is able to maximize output with given resources and technology, minimizing waste and inefficiencies.

Individual Transferable Quotas

Regulatory tools in environmental management, granting individuals or companies the right to catch a certain amount of fish or pollute up to a certain limit, which can be traded.

ITQs

Individual Transferable Quotas, a system used in fisheries management that allocates a certain quantity of fish that can be caught by each fisherman or company.

Efficient Use

Utilization of resources in a way that maximizes the output or benefits while minimizing waste, costs, or inefficiencies.