Which of the Following Is False Regarding Capacity Expansion

question 20

Multiple Choice

Which of the following is False regarding capacity expansion?

• A) "Average" capacity sometimes leads demand, sometimes lags it.
• B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
• C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
• D) Capacity may only be added in large chunks.
• E) All of the above are true.

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