Scarcity Implies That

question 44

Multiple Choice

Scarcity implies that

• A) the satisfaction of one person's want means another person's want can also be satisfied.
• B) the satisfaction of one person's want means another person will be more than satisfied.
• C) the satisfaction of one person's want means another person's want cannot be satisfied.
• D) no person's wants can be satisfied.

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Definitions:

Monthly Sales

The total revenue generated from the sale of goods or services within a specific month.

Net Operating Income

is the total profit of a business after deducting operating expenses but before subtracting taxes and interest.

Contribution Margin Ratio

A metric that reveals the percentage of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Margin of Safety

Represents the extent to which sales can drop before a business reaches its break-even point.