A Wait-And-See Capacity Strategy

question 110

Multiple Choice

A wait-and-see capacity strategy:

• A) involves small, frequent jumps in capacity.
• B) minimizes the chance of lost sales due to insufficient capacity.
• C) can result in economies of scale and a fast rate of learning, yielding reduced manufacturing costs.
• D) stays ahead of demand.

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Definitions:

Cost Of Living

The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a particular place and time.

Base Year

A specific year chosen as a point of reference for comparing economic data, such as price levels, over time.

Inflation

The tempo at which the general price level of goods and services rises, leading to a fall in the ability to purchase.

Disinflation

A drop in the pace of inflation, showing that the rate at which prices of goods and services climb is slowing down.