Which of the following is a characteristic of a facility with excess capacity?

A) Will likely be more efficient per unit of product it produces than one with a lot of unused capacity
B) Would be very inflexible and respond to wide swings in the demands placed on it
C) Would be considered a high utilization facility
D) Will have difficulty responding to demand fluctuations

Demand Fluctuations

Variations in customer demand for products or services over a certain period of time.

Excess Capacity

The situation where a company's production capabilities exceed the current demand for its products or services, leading to underutilized resources.

Utilization Facility

A facility used primarily for the processing, conversion, or treatment of resources or materials, often in the energy sector.