It Is Never Appropriate to Expand Capacity in Advance of Growing

question 41

True/False

It is never appropriate to expand capacity in advance of growing demand because the excess capacity will always be underutilized.

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Definitions:

Disagreement Value

The worst outcome that a party is willing to accept before walking away from negotiations or a transaction.

Car Dealer

A business entity that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary.

Sale Price

The final price at which a product or service is sold after any deductions or promotions.

Bargaining Position

The relative power or advantage one party holds during negotiations, affecting their capacity to influence the terms.