If a firm has an option to alter operating scale and decides that the operating scale should be altered,either positively or negatively,that decision may be thought of as the:

Question

Quizplus · Accepted Answer

If a firm decides to alter its operating scale, it is exercising the option it had to do so. This decision does not necessarily lead to abandoning the project, investment of additional funds, or require solely high-level decision-making. Therefore, option D is the correct answer.

If a Firm Has an Option to Alter Operating Scale