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:

Rice

A staple food cereal grain that is a major dietary component for a large portion of the world's population, especially in Asia.

Mesolithic Cultures

Societies that existed in the Middle Stone Age, characterized by the use of small stone tools and a hunter-gatherer lifestyle.

Americas

A geographic region that includes the continental masses of North and South America, including the Caribbean and other islands.

Wild Foods

Naturally occurring plants and animals that can be harvested or hunted for consumption without being cultivated.