What Defines Flexible Resources

question 61

Multiple Choice

What defines flexible resources?

• A)A change in resource spending will occur only if the demand for a resource drops permanently and exceeds demand enough so the activity capacity will be reduced.
• B)Often,resources are acquired in advance for multiple periods and are therefore irrelevant.
• C)Decisions often affect multi-period capabilities.
• D)If the demand for an activity changes across alternatives,then resource spending will change and the cost of the activity will be relevant to the decision.

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when choosing among multiple options, measuring the trade-off involved in any decision.

Opportunity Cost

The value of the best alternative forgone when a choice is made, representing the benefits one could have received by taking an alternative action.

Gains From Trade

The benefit that entities receive from engaging in voluntary trade, often resulting in better allocation of resources and increased efficiency.

Comparative Advantage

The proficiency of an entity, whether it's an individual, corporate body, or state, to create a good or offer a service at a more economical opportunity cost than its competition.