29
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Question 29 • Financial Math - MA2007

A company that makes baseball caps is underutilizing its resources. What does this mean?

Answer
A
The company is running more efficiently than its competitors.
B
The company is paying its employees less than it should be.
C
The company is making caps when it could be making t-shirts instead.
D
The company is producing fewer caps than it could be.

Explanation

Underutilizing resources means the company is not using all its available workers, equipment, or materials to their full productive capacity. As a result, it makes fewer caps than it could with those resources. So the correct choice is “The company is producing fewer caps than it could be.”

AI-written and checked against the verified answer.

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