Asked by Danielle Efrat on Jun 16, 2024
Verified
Which statement is true?
A) The capacity utilization rate for manufacturing firms usually ranges from 80 to 85 percent.
B) Net investment can be negative.
C) The most important determinant of the level of investment is the sales outlook.
D) All of the statements are true.
Capacity Utilization Rate
A metric that measures the proportion of potential economic output that is actually realized.
Net Investment
The total spent on new capital assets (capital expenditure) minus depreciation. It reflects the increase in the value of an entity's assets.
Sales Outlook
An estimate or forecast of future sales performance of a company or industry over a specific period.
- Understand the elements that affect the rate of capacity utilization and their implications on the economy.
Verified Answer
Learning Objectives
- Understand the elements that affect the rate of capacity utilization and their implications on the economy.
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