Which Focuses on Increasing the Excess of Differential Revenue Over

question 177

Multiple Choice

Which focuses on increasing the excess of differential revenue over differential costs when the firm faces bottlenecks?

• A)Differential income analysis
• B)Throughput analysis
• C)Theory of bottlenecks
• D)Theory of constraints

---

Definitions:

Inelastic

Inelastic refers to a situation in which the quantity demanded or supplied of a good or service is relatively unresponsive to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level, at a given point in time.

Elasticity Coefficient

A numeric value that measures the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.

Perfectly Inelastic

A situation where the demand for a product does not change in response to changes in price; the demand curve is perfectly vertical.