Where Several Products Are Produced and There Is a Scarce

question 58

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:

Constitutes Acceptance

The act or process that signals agreement to the terms of an offer, thereby creating a binding contract.

Testing

The process of evaluating a product, service, or system to determine if it meets specified requirements, or to identify differences between expected and actual results.

UCC

The Uniform Commercial Code is a comprehensive set of laws that govern commercial transactions in the United States, intended to standardize regulations across states.

Place Of Delivery

The specified location where goods are to be delivered under a contract of carriage.