Maximum capacity refers to the upper limit of:
A) inventories.
B) demand.
C) supplies.
D) rate of output.
E) finances.

Question

Quizplus · Accepted Answer

Maximum capacity refers to the upper limit or maximum amount that a manufacturing firm or facility can produce within a given period of time. It often relates to the rate of output and the ability of the firm to meet demands while remaining efficient. Therefore, option D, rate of output, best reflects the definition of maximum capacity.

Maximum Capacity Refers to the Upper Limit Of