When There Is One Scarce Resource, the Product That Should

question 53

Multiple Choice

When there is one scarce resource, the product that should be produced first is the product with the highest

• A)contribution margin per unit of the scarce resource.
• B)sales price per unit of the scarce resource.
• C)demand.
• D)contribution margin per unit.

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Definitions:

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers or segments based on shared characteristics.

Process

A series of actions or steps taken in order to achieve a particular end.

Mass Customization

A strategy that combines the low costs of mass production with the flexibility of individual customization.

Build-to-order

A production approach where products are not made until an order is received, allowing for high customization and minimizing inventory costs.