A New Product Should Be Introduced If Its Profit Contribution

question 38

Multiple Choice

A new product should be introduced if its profit contribution:

• A) exceeds the shadow price of each resource needed to produce it.
• B) is less than the opportunity cost of producing it.
• C) exceeds the total value of the resources used, valued at their respective shadow prices.
• D) is greater than zero.
• E) is greater than the profit contributions of the other goods produced by the firm.

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Definitions:

Channel

The medium through which a message is transmitted from sender to receiver, such as email, text, or face-to-face communication.

Data Consumption

The process of using or processing data by downloading, viewing, or engaging with digital content.

Mobile Devices

Portable electronic devices that have the capability of accessing the internet, such as smartphones and tablets.

Text Messaging

The act of sending short, written messages via mobile phones or other devices using SMS (Short Message Service) or similar technologies.