1. Each company should only have one capacity configuration for all the business. T/F 2. The output of an operation could exceed its capacity. T/F 3. Forecast demand is a good starting point in trying to understand why operations become the size they are. T/F 4. In some circumstance, undersupplying a market may increase the value of an operation's goods or services T/F 5. As production volume increases, the unit cost will always continue to decline. T/F 6. Expanding physical capacity in advance of effective capacity can bring greater returns in the longer term. T/F 7. Operations adopting capacity lagging strategy always have sufficient capacity to meet demand. T/F 8. One disadvantage of smoothing-with-inventory strategy is the costs of inventories. T/F 9. The utilization of plant that adopts capacity leading strategy is always relatively low. T/F 10. Smaller scale capacity increments allow the capacity plan to be adjusted to accommodate changes in demand. T/F