Tripling a firm's capacity always guarantees that output will triple.

### Why this is right The course material cautions that expanded capacity may not produce a proportionate output increase in practice. Operating constraints and other changing conditions can reduce the realized increase. ### The concept A model may predict a relationship under simplified assumptions, but real production involves factors such as labor, technology, input availability, and operating conditions. Managers should distinguish a theoretical expectation from an observed result. ### The other options - **True**: this treats proportional output growth as guaranteed. The course example explicitly notes that tripling capacity might yield less than triple output. ### Remember More capacity creates the possibility of more output, not a guarantee of a proportional increase.