Which of the Following Is False Regarding Capacity Expansion

question 78

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.

---

Definitions:

Latent Needs

Unrecognized or unspoken desires or requirements of consumers that haven't yet been addressed by the market.

Lufthansa Plane Seats

The seating arrangements and options available on flights operated by Lufthansa, the German airline.

Business Travelers

Individuals who travel primarily for business purposes, often involving trips organized by their employers or businesses.

Inspiration

The process of being mentally stimulated to do or feel something, especially something creative or the arousal of a sudden brilliant, creative, or timely idea.