Question

In​ manufacturing, excess capacity can be used to A. do fewer​ setups, lengthen production​ runs, and drive down inventory costs. B. do fewer​ setups, shorten production​ runs, and drive down inventory costs. C. do more​ setups, lengthen production​ runs, and drive down inventory costs. D. do more​ setups, shorten production​ runs, and drive down inventory costs.

Answer 1

In​ manufacturing, excess capacity can be used todo more​ setups, shorten production​ runs, and drive down inventory costs

Step-by-step explanation:

Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for. Context: It exists when marginal cost is less than average cost and it is still possible to decrease average (unit) cost by producing more goods and services