_____ Is a Strategy That Waits Until Demand Has Increased

question 18

Multiple Choice

_____ is a strategy that waits until demand has increased to a point where additional capacity is necessary.

• A) Capacity lag
• B) Capacity lead
• C) Capacity reduction
• D) Capacity match

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Definitions:

Market Failure

A situation where free markets fail to allocate resources efficiently, leading to a loss of economic and social welfare.

Asymmetric-Information Problem

A situation where one party in a transaction has more or better information than the other, leading to unfair advantages.

Used Car Market

The segment of the automotive market that deals with the sale and purchase of pre-owned vehicles.

Declining Quality

The phenomenon where the standard or grade of a product, service, or overall condition deteriorates over time, potentially affecting customer satisfaction and market position.