What Is One Reason Why It Is a Bad Idea

question 107

Multiple Choice

What is one reason why it is a bad idea for a company to have excess capacity?

• A) Wastes raw materials
• B) Increases customer dissatisfaction
• C) Ties up money in extra machines
• D) Decreases form utility
• E) Slows delivery of product

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Definitions:

Additional Information

Supplementary data or details provided to enhance understanding or context.

Car Audio Store

A specialized retailer that sells and sometimes installs sound systems, speakers, and other audio equipment for vehicles.

Expected Payoff

In decision theory and economics, it is the average of all possible outcomes, each weighted by its probability of occurrence.

Perfect Information

A situation in decision theory and economics where all parties have full and identical information about all aspects of the situation.