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How Might a Firm Efficiently Anticipate That a Project Might

Question 49

Multiple Choice

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


A) The firm could borrow extra funds initially to use in case demand exceeded expectations.
B) The firm could build,rent or take an option for increased capacity to accommodate demand in excess of the demand originally anticipated.
C) The firm could wait to commit to the project until the demand was known.
D) The firm could contract with competitors to produce to meet any demand that the firm could not meet.

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