The cost of wasted capacity is the margin that would have been generated if the capacity had been used for production.

Question

Quizplus · Accepted Answer

The cost of wasted capacity refers to the economic loss incurred as a result of unused capacity that could have been used for producing goods or services. This economic loss can be measured by the margin or profit that could have been generated if the capacity was utilized. Therefore, the statement is true.

The Cost of Wasted Capacity Is the Margin That Would