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If the Ability to Sell and the Amount of Production

question 88

True/False

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


Definitions:

Marginal Utility

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.

Interest Rate

The percentage of a sum of money charged for its use, which can be seen as the cost of borrowing money or the return on saving.

Rule Of 70

A method used to estimate the number of years it will take for a variable to double, calculated by dividing 70 by the annual growth rate.

Interest Rate

The proportion of a specified sum that is added as a charge for borrowing it, usually stated as an annual rate.

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