How Can Firms Constructively React to Overcapacity

question 42

Multiple Choice

How can firms constructively react to overcapacity?

• A)Firms can invest to modernize facilities and production facilities.
• B)Firms can merge with firms that need addition capacity so that the capacity of the two firms balances out.
• C)Firms can identify unproductive or underproductive assets and obtain the salvage value of those assets.
• D)Firms can offshore or outsource to rid themselves of overcapacity.

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Definitions:

Direct Request

A communication approach where the speaker plainly states their needs or desires without ambiguity.

Communication

The exchange of information, thoughts, or messages through spoken words, writing, or nonverbal means.

Detailed Explanation

An in-depth description or clarification of a topic, idea, or process.

Routine Message

A type of communication that conveys regular, everyday information or procedures within an organization.