Why is it important to determine whether or not a firm is operating at full capacity?

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Because, for a given increase in sales, firms operating at less than full capacity will experience more rapid asset growth than firms that do operate at full capacity..

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Because only firms operating at full capacity can grow.

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Because in a firm that is operating at less than full capacity, fixed assets will typically increase at the same percentage as sales.

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Because a firm that is operating at less than full capacity has some room to expand sales without having to increase its investment in fixed assets.

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Because a firm that is operating at less than full capacity will not need any external financing.

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Why is it important to determine whether or not a firm is operating at full capa...

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