When the opportunity cost of lost revenue is relatively high, _____ become(s)relatively more attractive.
A)layoffs
B)back orders
C)excess capacity
D)disaggregation
E)minimal inventory

Question

Quizplus · Accepted Answer

Excess capacity becomes more attractive when the opportunity cost of lost revenue is high because it allows a company to meet demand without losing sales, thus minimizing the revenue lost due to insufficient capacity.

When the Opportunity Cost of Lost Revenue Is Relatively High