The Rule for the Optimal Use of Any Input States

question 131

Multiple Choice

The rule for the optimal use of any input states that

• A) when MRP is less than price, profit will increase when more of that resource is utilized.
• B) when MRP is greater than resource price, profit will increase when more of that resource is utilized.
• C) when MRP equals price, profit will increase when less of that resource is utilized.
• D) when MRP is greater than resource price, profit will increase when less of that resource is utilized.
• E) resources should be used only if MRP exceeds product price.

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Definitions:

Privity of Contract

A doctrine in contract law that prohibits any person who is not a party to a contract from enforcing or being bound by the terms of that contract.

Legally Enforce

The capability to impose compliance or execution of a law, agreement, or obligation through legal processes or judicial intervention.

Assignee

A person to whom an assignment is made.

Obligor

In contract law, the party who is obligated to deliver on a promise or to undertake some act.