146k views
5 votes
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. What are the options being considered by Expando, Inc.?

User Yuyutsu
by
7.5k points

1 Answer

4 votes

Final answer:

Expando, Inc. is considering expanding its product line through a new factory, which is a significant decision involving long-term planning and investment, particularly in expanding production, building a new facility, and hiring workers.

Step-by-step explanation:

The options being considered by Expando, Inc. for building an additional factory include starting to sell new products and potentially expanding their market presence. The decision involves assessing the cost and benefit over the long term, as it is usually easier for producers to expand production over several years compared to the short run. This is due to the significant upfront investment required to build a new factory, hire workers, and possibly open new sales facilities. Each of these actions requires careful planning as they can significantly alter the supply side of the market and impact the company's operations for years to come.

User Tiborg
by
7.4k points