If the Ability to Sell and the Amount of Production

question 73

True/False

If the ability to sell and the amount of production facilities devoted to each of two products is equal,it is profitable to increase the sales of that product with the lowest contribution margin.

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Definitions:

Total Benefit

The complete gain or satisfaction a person receives from consuming a good or service.

Economic Assumption

A foundational concept in economics that simplifies analysis by presuming conditions like rational behavior, market equilibrium, and fixed resources.

Marginal Benefit

The additional satisfaction or utility obtained from consuming or producing one more unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product.