Final answer:
When a company can't fulfill all customer demand, it faces volume trade-off decisions related to production, pricing, and market presence, which can lead to opening or closing facilities, hiring or laying off workers, and altering product offerings.
Step-by-step explanation:
When a company does not have enough capacity to produce all of the products and sales volume demanded by their customers, this leads to volume trade-off decisions. These decisions are critical for a firm as it looks to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or to lay them off, and decide whether to start selling new products or stop selling existing ones. Therefore, companies must carefully weigh their options and decide on the best course of action to maximize profitability and sustainability, sometimes even considering the possibility to close operations if it's more beneficial in the long run.