When There Is a Production Constraint,a Company Should Emphasize the Products

question 109

Multiple Choice

When there is a production constraint,a company should emphasize the products with:

• A)the highest unit contribution margins.
• B)the highest contribution margin ratios.
• C)the highest contribution margin per unit of the constrained resource.
• D)the highest contribution margins and contribution margin ratios.

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Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as production increases.

MC Shifts

Changes in the marginal cost curve, which can occur due to variations in factors like input prices, technology, or regulations.

Output Changes

Alterations in the quantity of goods or services produced by a firm, industry, or economy, influenced by factors like technology, input prices, and demand.

Federal Rules

The regulations established by federal authorities that govern legal procedures, evidence, and the administration of justice in federal courts.