The Demand for a Nonrenewable Resource Is

question 77

Multiple Choice

The demand for a nonrenewable resource is

• A) determined by the value of its marginal product.
• B) fixed and cannot change.
• C) perfectly inelastic.
• D) perfectly elastic.
• E) not defined because the resource can be used only once.

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Definitions:

Contribution Margin Ratios

The proportion of sales revenue that remains after variable costs are subtracted, indicating how well a company can cover fixed costs and generate profits.

Constrained Resource

A factor within a production or operation process that limits the overall output, such as limited machinery, labor, or materials.

Direct Labour-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.

Contribution Margin

The difference between sales revenue and variable costs, representing the portion of sales that contributes to covering fixed costs.