When There Is a Production Constraint,a Company Should Emphasize the Products

question 109

Multiple Choice

When there is a production constraint,a company should emphasize the products with:

• A)the highest unit contribution margins.
• B)the highest contribution margin ratios.
• C)the highest contribution margin per unit of the constrained resource.
• D)the highest contribution margins and contribution margin ratios.

---

Definitions:

Few Firms

A market situation typically characterized by an oligopoly, where a small number of companies possess the majority of market share.

Tacit Collusion

An unwritten, unspoken understanding among competitors to set prices or production levels to avoid direct competition.

Formal Agreement

A legally binding contract or arrangement between two or more parties, often documented and enforceable by law.

Duopolists

Firms or entities within an oligopoly that specifically consist of only two producers or sellers in the market.