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A Land Developer and Several Ecologists Are Discussing How a Parcel

question 41

Multiple Choice

A land developer and several ecologists are discussing how a parcel of private land should be developed with housing while saving 20 hectares as natural habitat. The land developer suggests that the 20 hectares be divided into 20 separate 1-hectare areas, spread out across the area. The ecologists suggest that it would be better to have one intact parcel of 20 hectares on one side of the larger area. What is the significance of these different arrangements of the 20 hectares?


Definitions:

Constrained Resource

A factor that limits the output of a process or system, such as a machine, worker, or material that is in short supply.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and profit.

Special Order

An order for goods or services that is outside the company's normal production routine or product range.

Resale Value

The estimated amount that an asset or good will be sold for at the end of its useful life.

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