Where Several Products Are Produced and There Is a Scarce

question 43

Multiple Choice

Where several products are produced and there is a scarce factor, what is the rule for deciding on the optimum product mix?

• A)produce only the product with the highest contribution margin.
• B)produce only the product with the highest contribution margin per unit of scarce factor.
• C)produce as much as can be sold of the product with the highest contribution margin per unit of scarce factor, and use any remaining resource to produce the product with the next highest contribution margin per unit of scarce factor etc.
• D)produce equal quantities of all products.

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Definitions:

Ciliary Ganglion

A parasympathetic ganglion located in the orbit that plays a role in controlling the ciliary muscles of the eye, affecting lens shape and pupil size.

Otic Ganglion

A small parasympathetic ganglion located just below the ear, associated with the glossopharyngeal nerve, involved in salivation and lacrimation.

Parasympathetic Cranial

Pertaining to the cranial part of the parasympathetic nervous system, which helps control bodily functions when at rest, like saliva production and slowing the heartbeat.

Glossopharyngeal

A cranial nerve (IX) that manages taste and other functions in the throat and tongue.