The frequency of adding to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.

Question

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It is important for businesses to find the right balance between upgrading their productive capacity too frequently and not upgrading it frequently enough. Upgrading too frequently can lead to unnecessary costs, while not upgrading frequently enough can result in decreased productivity and competitiveness. Therefore, the frequency of adding to productive capacity should be balanced to minimize costs and maximize efficiency.

The Frequency of Adding to Productive Capacity Should Balance the Costs