Examlex

Solved

The Jupiter Division of Space Ltd Produces Dilithium Crystals

question 46

Multiple Choice

The Jupiter Division of Space Ltd produces dilithium crystals. One-third of its output is sold to the Antari Division, and the remainder is sold externally. Jupiter's estimated sales and cost data for the coming year are: The Jupiter Division of Space Ltd produces dilithium crystals. One-third of its output is sold to the Antari Division, and the remainder is sold externally. Jupiter's estimated sales and cost data for the coming year are:   Assume that Jupiter cannot sell any additional crystals externally. If the Antari Division has an opportunity to buy from an outside supplier at $1.40 per crystal and Jupiter refuses to meet this price, the company as a whole will be A)  $1,250 better off B)  $3,750 worse off C)  $6,250 better off D)  $5,000 worse off Assume that Jupiter cannot sell any additional crystals externally. If the Antari Division has an opportunity to buy from an outside supplier at $1.40 per crystal and Jupiter refuses to meet this price, the company as a whole will be


Definitions:

Societal Choices

Decisions made by a society as a whole about the allocation of resources and priorities among different uses.

Opportunity Cost

The worth of the best alternative given up as a consequence of a decision made.

Utility

The subjective benefit or satisfaction a person expects from a choice or course of action.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Related Questions