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An entrepreneur is never going to build a capacity that she knows is not going to use with absolute certainty because this behavior is not

An entrepreneur is never going to build a capacity that she knows is not going to use with absolute certainty because this behavior is not profit maximizing. a) True, having idle capacity will lower profits. b) True, because all capacity not used still generates maintenance costs. c) False, it has good option value. d) False, this could be a good way to prevent entry.

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