If a firm is operating at 70% of its capacity, which one of the following statements is true?

25 Capacity utilisation (A Level)

Quiz
•
Business
•
11th - 12th Grade
•
Hard
Aishwarya Gurung
Used 5+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Fixed costs are currently lower than they would be at full capacity.
There is excess capacity.
The firm would have to take on more workers to increase production.
The firm is making a profit
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It is estimated that businesses in the car industry will be profitable if for every four cars being produced and sold there is only the capacity to produce five cars. What level of capacity utilisation is necessary to ensure profit is made?
125%
20%
75%
80%
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
As a firm increases its capacity utilisation from 50% to 60%, then, other things being equal, average fixed costs will:
remain unchanged
increase by 20%
fall
become 0
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
In a particular industry, it was observed that worldwide capacity rose to 15 million units a week in the fourth quarter of 2014, up from 14 million in the third quarter. Capacity utilisation also increased to 95%, from 90% in the third quarter. By how much did actual production per week increase between the third and fourth quarter?
165,000 units
1 million units
1.65 million units
12.6 million units
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
A manufacturer has a capacity of 100,000 units per month. At this level of production, the fixed cost per unit is $0.10 and the variable cost per unit is $0.15. What is the average total cost at a capacity utilisation of 40% (assume that variable costs are linear)?
$0.40
$0.25
$0.475
$0.625
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
A firm that is faced with the problem of long-term excess capacity is most likely to benefit from which one of the following strategies?
rationalisation
increasing production and adding to inventories
reducing employee holidays so that more can be produced
reducing promotional expenditure
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which one of the following is not a problem associated with full-capacity working? a a decline in customer service if demand increases b a reduction in downtime during which maintenance can be carried out c inability to meet increased levels of demand d worker demotivation due to fears over job security
a decline in customer service if demand increases
a reduction in downtime during which maintenance can be carried out
inability to meet increased levels of demand
worker demotivation due to fears over job security
Create a free account and access millions of resources
Similar Resources on Quizizz
15 questions
Capacity Utilization

Quiz
•
11th Grade
15 questions
production qns edexcel business a level

Quiz
•
12th Grade
11 questions
MCQ Revision Test 4

Quiz
•
12th Grade - University
11 questions
Marginal Utility and Marginal Cost

Quiz
•
10th - 12th Grade
14 questions
capacity utilization

Quiz
•
12th Grade
15 questions
Operations Management

Quiz
•
11th - 12th Grade
15 questions
Capacity Utilisation and Economies of Scale Quiz

Quiz
•
12th Grade
15 questions
Lean

Quiz
•
12th Grade
Popular Resources on Quizizz
10 questions
Chains by Laurie Halse Anderson Chapters 1-3 Quiz

Quiz
•
6th Grade
20 questions
math review

Quiz
•
4th Grade
15 questions
Character Analysis

Quiz
•
4th Grade
12 questions
Multiplying Fractions

Quiz
•
6th Grade
30 questions
Biology Regents Review #1

Quiz
•
9th Grade
20 questions
Reading Comprehension

Quiz
•
5th Grade
20 questions
Types of Credit

Quiz
•
9th - 12th Grade
50 questions
Biology Regents Review: Structure & Function

Quiz
•
9th - 12th Grade
Discover more resources for Business
20 questions
Types of Credit

Quiz
•
9th - 12th Grade
50 questions
Biology Regents Review: Structure & Function

Quiz
•
9th - 12th Grade
20 questions
Taxes

Quiz
•
9th - 12th Grade
20 questions
Chapter 3 - Making a Good Impression

Quiz
•
9th - 12th Grade
14 questions
Attributes of Linear Functions

Quiz
•
9th - 12th Grade
10 questions
Identifying equations

Quiz
•
KG - University
50 questions
Biology Regents Review 2: Ecology

Quiz
•
9th - 12th Grade
20 questions
Investing

Quiz
•
9th - 12th Grade