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:

Too Much Evidence

A situation where the abundance of information or data complicates the decision-making process or leads to confusion.

Opposite

Something that is completely different or contrary to something else.

Hasty Generalization

A logical fallacy that involves making a rushed conclusion based on insufficient evidence.

Fallacy

A reasoning error that causes an argument to be invalid.