Zenith Corp

Multiple Choice

Zenith Corp., a bag company, produced a lot of high-end leather bags than could be sold in the market for a year. The leather bags eventually wore out and were not fit to be sold, thus causing huge losses for that year. Which of the following did Zenith Corp. most probably experience during that year?

A) Use of full production capacity
B) Unused production capacity
C) High exit barriers
D) Special sales incentives