When a Firm Operates at Less Than Full Capacity

When a firm operates at less than full capacity

A) managers should charge the cost of accelerating new capacity development against the current proposal for using excess capacity.
B) treating that excess capacity as a free asset is a good idea in both the long- and short-run.
C) treating that excess capacity as a free asset may accelerate the need for more capacity in the future.
D) All of the above are true.
E) Both (a) and (c) are true.