Which of the following is INCORRECT about capacity$-$constrained businesses?

Hotels and restaurants are "capacity$-$constrained" businesses because their ability to grow is restricted.

In the manufacturing of goods, capacity is less constrained because peaks and valleys of supply and demand are managed by finishing goods in advance and storing them until needed.

Since a hotel has a fixed number of beds and a restaurant has a fixed number of seats, much of the time hotel and restaurant operators must follow a levelcapacity strategy in which the same amount of capacity is offered regardless of demand.

Since service firms cannot manufacture and store services, they must strive to match their productive capacity to consumer demand.