Which of the Following Is FALSE Regarding Capacity Expansion

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) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.