Chapter 13, Problem 4AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 4AA

The correct answer is capacity.

Explanation of Solution

Efficiency is the maximum production that a company can achieve with installed equipment at a particular time. It's really beneficial to know if the business is running at full efficiency. Economic efficiency means an economic system in which each resource is best distributed to every single person or company better, while reducing waste and inefficiency. Any changes made to support one citizen would benefit another, if an economy is economically competitive.

Economics Concept Introduction

Introduction: The capacity of a factory to produce is called the capacity of a factory with the present resources and facilities it controls. For instance, the overall capacity will be 60 x 8 = 480 hours per day that is 60 machines in an industry which can be operated for 8 hours per day. So, the maximum capacity is 480 hours.