If the Ability to Sell and the Amount of Production

question 73

True/False

If the ability to sell and the amount of production facilities devoted to each of two products is equal,it is profitable to increase the sales of that product with the lowest contribution margin.

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Definitions:

Circular Flow Model

An economic model that describes the movement of money, goods and services, and resources between producers and consumers in the economy.

Entrepreneurial Ability

The skill to innovate, introduce new products or processes, and successfully manage business ventures.

Rent

A periodic payment made by tenants to owners for the use of property or land, or the income derived from the lease of such property.

Resource Market

Markets where the services of the factors of production (such as labour, capital, land) are bought and sold.