If a Resource Is in Fact Becoming Scarcer, Then One

question 122

Multiple Choice

If a resource is in fact becoming scarcer, then one should expect

• A)the price of the resource to rise.
• B)less demand for the resource as people try to conserve.
• C)greater supply as people reduce inventories before it is all gone.
• D)all of the above.

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Definitions:

Raw Materials Used

The total cost or value of all primary materials consumed in the production process over a specified period.

Raw Material Price

The cost of basic materials before being processed or used in manufacturing.

Net Operating Income

Earnings derived from a company's everyday business operations, excluding taxes and other non-operational expenses.

Standard Cost

A predetermined cost of manufacturing, administering, or marketing a product under normal conditions.