In a Plant Operating at Capacity

question 39

Multiple Choice

In a plant operating at capacity:

• A) every machine and person in the plant is working at the maximum possible rate.
• B) only some specific machines or processes are operating at the maximum rate possible.
• C) profits are maximized.
• D) managers should produce those products with the highest contribution margin in order to deal with the constrained resource.

---

Definitions:

Chesapeake Area

A region in the United States including and surrounding the Chesapeake Bay, significant for its history, economy, and ecological diversity.

Massachusetts Bay

A region in the northeastern United States, centered around the body of water with the same name, historically significant for being a major site of early English colonization in America.

Trade with Indians

The exchange of goods, services, and commodities between European settlers and Native American tribes during the exploration and colonization periods.

Indentured Servitude

A labor system wherein young people paid for their passage to the New World by working for an employer for a certain number of years.