All of the following options are available to a firm when capacity exceeds demand except to
A) lay off workers and shut down a portion of the facility.
B) operate on a shorter work week.
C) produce other goods or services.
D) sell unused facilities.
E) give away some of the products to selected customers.

Question

Quizplus · Accepted Answer

All of the options listed except for giving away products to selected customers involve reducing capacity to match demand. Giving away products may not generate revenue, but it can generate goodwill, positive publicity, and potentially lead to future sales. Therefore, it is the best choice that does not involve reducing capacity.

All of the Following Options Are Available to a Firm