Which of the Following Is False Regarding Capacity Expansion

Which of the following is False regarding capacity expansion?

A) "Average" capacity sometimes leads demand, sometimes lags it.
B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
D) Capacity may only be added in large chunks.
E) All of the above are true.

Correct Answer:

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