Asked by Dorothy Dietrich on Jul 08, 2024

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Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?

A) They are cheaper.
B) They are more accurate.
C) They delay capital expenditure.
D) They increase demand.
E) They increase the need for capital expenditure.

Lag Strategy

A deliberate decision to not be a first mover in an industry or market, observing and reacting to competitors' actions.

Straddle Strategy

A trading strategy that involves purchasing both a call option and a put option for the same underlying asset, with the same strike price and expiration date, allowing investors to benefit from significant price movements in either direction.

Leading Strategy

A forward-thinking approach in business or military operations that involves taking proactive measures to achieve a competitive advantage or fulfill objectives.

  • Examine various strategies for managing capacity, such as lead, lag, and straddle approaches.
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LM
Leticia MolinaJul 10, 2024
Final Answer :
C
Explanation :
Lag and straddle strategies involve delaying capital expenditure until demand has increased, whereas a leading strategy involves investing in capacity before demand has increased. Delaying capital expenditure can save money and reduce the risk of overinvestment if demand does not materialize as expected.