A manufacturing firm that is producing at less than maximum output due to a government restriction on hours of operation is operating:
A) with less competition.
B) at a loss.
C) with fewer resources.
D) inefficiently.

Question

Quizplus · Accepted Answer

Operating at less than maximum output due to government restrictions, such as limitations on hours of operation, typically leads to inefficiencies. This is because the firm cannot utilize its resources to their fullest potential, resulting in a lower level of productivity than what could be achieved under unrestricted conditions.

A Manufacturing Firm That Is Producing at Less Than Maximum