How might a firm efficiently anticipate that a project might grow in size so that it could adjust easily to such growth?

Question

Quizplus · Accepted Answer

Building, renting, or taking an option for increased capacity is a proactive approach that allows the firm to scale up production quickly if demand exceeds expectations. This approach is more effective than borrowing funds initially, which may lead to additional costs due to interest and other fees. Waiting to commit to the project until the demand is known or contracting with competitors are reactive approaches that may not be as efficient in addressing unexpected growth in demand.

How Might a Firm Efficiently Anticipate That a Project Might