The option for a firm to expand future production has most value when:
A) future production will be profitable.
B) the outlook for the business is very assured.
C) the future is very uncertain.
D) today's production costs are lower than in the future.

Question

Quizplus · Accepted Answer

The option to expand future production is most valuable when the future is uncertain, as it provides flexibility to adapt to changing conditions and capitalize on potential opportunities.

The Option for a Firm to Expand Future Production Has