Question
Which of the following statements is correct when assessing profitability in a production environment that has scarce resources? Group of answer choices Most businesses are
Which of the following statements is correct when assessing profitability in a production environment that has scarce resources?
Group of answer choices
Most businesses are not limited by demand.
The most profitable result would be to minimise production of the product with the highest overall contribution margin.
The most profitable result would be to prioritise, or maximise, the production of the product with the highest contribution margin per unit of the scarce resource.
Production should only be prioritised based on market demand, not scarce resources.
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