The Opportunity Cost of Using One Unit of the Constrained

question 47

Multiple Choice

The opportunity cost of using one unit of the constrained resource in a volume trade-off decision is equal to:

• A) the profitability index for the company's best selling product.
• B) the profitability index for the product whose production would be cut back if necessary.
• C) the profitability index of the product with the fastest growing sales.
• D) the profitability index of the company's most profitable product.

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Definitions:

Thalamus

A brain structure that acts as a relay station for sensory and motor signal inputs to the cerebral cortex, except for the sense of smell.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions such as fear and pleasure, as well as instincts and mood.

Sensory Axons

Nerve fibers that transmit sensory information from the sensory receptors to the spinal cord and brain.

Central Nervous System

The part of the nervous system comprising the brain and spinal cord, responsible for processing and transmitting information.