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Which of the Following Statement Is True About Protective Capacity

Question 6

Multiple Choice

Which of the following statement is true about protective capacity?


A) Protective capacity is a layer of capacity above that which is absolutely required to meet known demand
B) Protective capacity provides the firm with the ability to compete with a focus strategy.
C) Protective capacity does not result in idle resources
D) Protective capacity is essential for all businesses due to uncertain demand patterns

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