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Q1. Boom Boom Company has been producing boom boxes for decades, but unfortunately demand for boom boxes has recently declined substantially, and machinery is now
Q1. Boom Boom Company has been producing boom boxes for decades, but unfortunately demand for boom boxes has recently declined substantially, and machinery is now not being used for production as much as it could be used. Management cannot figure out a way to increase demand for boom boxes, and the machinery is specific to producing boom boxes.
Is this unused capacity idle or excess capacity?
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Idle capacity
Excess capacity
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