Management Has Decided to Add Capacity Incrementally in Smaller Chunks

question 107

Multiple Choice

Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

• A) is very risky
• B) will result in low initial costs
• C) will ultimately result in lower costs per unit if demand increases rapidly
• D) positions the company to be well prepared for high demand in the future
• E) can lead to a large amount of excess capacity

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Definitions:

Pupil Dilation

The process by which the pupil, the circular opening in the center of the eye's iris, increases in size to allow more light to enter the eye.

Left Frontal Lobe

The left frontal lobe is a region of the brain associated with reasoning, motor skills, higher level cognition, and expressive language.

Autonomic Nervous System

The section of the nervous system responsible for regulating automatic body functions such as heartbeat, digestive processes, and breathing rate.

Autonomic Arousal

Autonomic arousal refers to the physical responses of the autonomic nervous system to stimuli, including changes in heart rate, breathing, and sweating.