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Which Is Not True About Long-Term Capacity

Question 30

Multiple Choice

Which is not true about long-term capacity?


A) Excess capacity can serve as a barrier to entry for other companies.
B) Capacity may be difficult and costly to modify.
C) Exceeding capacity minimizes operating costs.
D) Capacity affects the ability to satisfy customer's demand.
E) Capacity is usually a major determinant of initial capital costs.

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