When a firm operates at less than full capacitya. managers should charge the cost of accelerating new capacity development against the current proposal for using excess capacity. b.treating that excess capacity as a free asset is a good idea in both the long- and short-run. c.treating that excess capacity as a free asset may accelerate the need for more capacity in the future. d.All of the above are true. e.Both (a) and (c) are true

Janis owns and operates a store in a country experiencing a high rate of inflation. in order to prevent the value of money in her cash register from falling too quickly, janis sends an employee to the bank four times per day to make deposits in a interest-bearing account that protects the store's revenues from the effects of inflation. this is an example of the (menu costs/ unit of account costs/ shoesleather costs) of inflation. pick one