Question

Select all that apply

A company must make a volume trade-off decision when they Blank______.



Multiple select question.

must trade off units of one product for units of another


have excess capacity that is not currently being utilized


do not have enough capacity to satisfy all product demand

Answer 1

The correct selections for when a company must make a volume trade-off decision are:

1. **must trade off units of one product for units of another**
2. **do not have enough capacity to satisfy all product demand**

These scenarios necessitate a trade-off decision to allocate limited resources effectively between competing products. The option regarding having excess capacity may not directly require a trade-off decision, as the capacity could allow for production of multiple products without needing to prioritize one over another.