If a Firm Is Operating at Full Capacity, the Firm

Multiple Choice

If a firm is operating at full capacity, the firm is:

A) Generating the maximum level of sales given the current level of inventory.
B) Operating 24 hours a day.
C) Operating at the highest possible debt-equity ratio.
D) Generating the maximum amount of sales given the available level of cash.
E) Producing the maximum level of sales given the current level of fixed assets.