In Resource Utilisation Decisions,managers Should

question 32

Multiple Choice

In resource utilisation decisions,managers should:

• A) minimise the contribution margin per unit.
• B) minimise the use of the scarce resource.
• C) maximise the contribution margin per unit of scarce resource.
• D) maximise the contribution margin per unit.

---

Definitions:

Widgets

A generic term commonly used to refer to an unspecified, fictional product used in examples and economic theory.

Price Floor

A minimum price set by the government for certain goods and services that cannot legally be lowered, often above the equilibrium price.

Market Supply

Market supply represents the total quantity of a particular good or service that all producers are willing and able to sell at different price levels in a given period.

Producer Surplus

The difference between the amount that a producer is paid for a good or service and the lowest amount they are willing to accept for that good or service.