Firms Should Maintain Capacity Utilization at 100% at All Times

Multiple Choice

Firms should maintain capacity utilization at 100% at all times to minimize costs:

A) Yes, this is the right approach
B) No, since in practice 100% utilization is already beyond normal practical utilization, and increases costs.
C) No: in practice this is not feasible, and leaves no room for contingencies
D) Both b and c above