Question

True or false: Excess capacity, or unused available space, can be unproductive because it may lead to the purchase of additional equipment or space.

Answer 1

Excess capacity, or unused available space, can be unproductive because it may lead to the purchase of additional equipment or space.

Step-by-step explanation:

True. Excess capacity, or unused available space, can be unproductive because it may lead to the purchase of additional equipment or space. When a company has excess capacity, it means that it is not fully utilizing its existing resources to their fullest potential. This can result in wasted resources and unnecessary costs. For example, if a factory has excess production capacity, it may need to purchase more machinery or expand its facility in order to meet its production goals, which can be costly.