If uncertainty is ignored,a manager will always sign long-term contracts because they are typically cheaper and avoid all flexible capacity because it is more expensive.

Question

Quizplus · Accepted Answer

If uncertainty is ignored, a manager will always go for long-term contracts because they are typically cheaper and avoid flexible capacity because it is more expensive. This is because long-term contracts provide stability and predictability in terms of costs, whereas flexible capacity is designed to handle uncertainty and is generally more expensive due to its variability.

If Uncertainty Is Ignored,a Manager Will Always Sign Long-Term Contracts