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(a) The company would have generally low production costs(b) The company would be able to minimize operating costs(c) The company would have a loss of sales and lower profits(d) The company would be able to maximize profits(e) The company would be able to gain market share.
Its C: (variable expenses will lower but fixed asset will be higher thus bringing down overall profitability and increasing per unit production cost.)
(c)
ReaThe event that would be most likely to happen if a company was operating with insufficient capacity is that the company would have a loss of sales and lower profits.
Hence, option (c) is correct.
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