Which one of the following statements about capacity expansion is best?
A) The wait-and-see strategy involves small jumps in capacity compared to the expansionist strategy.
B) The expansionist strategy involves frequent jumps in capacity compared to the wait-and-see strategy.
C) The expansionist strategy minimizes risk.
D) The follow-the-leader strategy can help a firm gain a competitive advantage.

Question

Quizplus · Accepted Answer

The wait-and-see strategy typically involves smaller, more incremental increases in capacity, allowing a firm to respond to actual demand rather than forecasted demand, unlike the expansionist strategy which involves larger, less frequent capacity increases.

Which One of the Following Statements About Capacity Expansion Is