All of the Following Changes May Indicate a Change in Product

question 4

Multiple Choice

All of the following changes may indicate a change in product classification of a manufacturing process which has a splitoff point EXCEPT a:

• A)byproduct increases in sales value due to a new application
• B)main product becomes a joint product
• C)main product becomes technologically obsolete
• D)byproduct loses its market due to a new invention

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Definitions:

Returns To Scale

The change in output as a result of a proportional change in all input factors in the production process.

Marginal Product

The additional output resulting from the use of one more unit of a production factor, holding other factors constant.

Factor X

An unspecified or unknown factor that can influence outcomes in an economic model or analysis.

Production Function

A mathematical model that relates the amount of output produced to the quantities of various inputs or factors of production.