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When Demand Exceeds Capacity, All of the Following Are Reasonable

Question 192

Multiple Choice

When demand exceeds capacity, all of the following are reasonable options for the firm except


A) operating overtime hours to meet the demand.
B) starting a second or third shift.
C) subcontracting part of the work to other producers.
D) turning away some long-time customers.
E) expanding the capacity of the current facility.

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