Multiple choice

Directions: Choose the correct option for the given question.

______ is the activity level that smooths out highs and lows of production.

  1. Excess capacity

  2. Surplus capacity

  3. Normal capacity

  4. Abnormal capacity

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Normal capacity is the production level expected to be achieved over a period of time under normal circumstances, smoothing out the seasonal or cyclical fluctuations in production.

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