When actual production is below practical capacity,there is unused capacity in the distribution function as well as in the production function.

Question

Quizplus · Accepted Answer

When actual production is below practical capacity, it means that the company is not utilizing its full production capacity. This results in unused capacity not only in the production function but also in the distribution function, as the company does not need to distribute as many products as it could potentially produce. Therefore, the statement "When actual production is below practical capacity, there is unused capacity in the distribution function as well as in the production function" is true.

When Actual Production Is Below Practical Capacity,there Is Unused Capacity