Question

U m uts will pluuucis die SulU Theoretical capacity refers to a. the actual activity level at which a business is operating. b. the maximum productive output possible for a business. c. an output level that allows for normal work stoppages. d. the operating capacity that will meet expected sales demand. Whink of the following annte in mont Hilal to remain fixed within a re

Answer 1

Theoretical capacity is the amount of throughput that could be attained if a production facility were able to produce at its peak efficiency level.

Thus the answer is b)