When two projects both require the total use of the same limited economic resource, the projects are generally considered to be:
A) Independent.
B) Marginally proﬁtable.
C) Mutually exclusive.
D) Acceptable.
E) Internally proﬁtable.

Question

Quizplus · Accepted Answer

When two projects require the total use of the same limited economic resource, they are called mutually exclusive projects. This means that selecting one project automatically means rejecting the other project due to resource constraints. Therefore, the choice must be made between the two projects, and only one can be accepted.

When Two Projects Both Require the Total Use of the Same