What Should a Firm Faced with a Production Constraint Do

question 93

Multiple Choice

What should a firm faced with a production constraint do to maximize total contribution margin?

• A) Promote those products having the highest unit contribution margins.
• B) Promote those products having the highest contribution margin ratios.
• C) Promote those products having the highest contribution margin per unit of constrained resource.
• D) Promote those products having the highest contribution margins and contribution margin ratios.

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Definitions:

Natural Materials

Materials that are derived from nature, such as wood, stone, clay, or natural fibers, often used in art, construction, and design.

Western Techniques

Artistic methods and principles originating from the Western world, often emphasizing perspective, proportion, and realistic representations.

Yoga

A group of physical, mental, and spiritual practices or disciplines originating in ancient India, aimed at achieving tranquility and insight, and improving health and relaxation.

Nihonga

A 19th-century Japanese painting style that incorporated some Western techniques in Japanese-style painting, as opposed to yoga (Western painting).