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

Projects that require the total use of the same limited economic resource are considered to be mutually exclusive. This means that the choice of one project means the rejection of the other project(s). It is necessary to undertake an analysis to determine which project provides the highest economic returns or yields the highest benefits to the organization. Therefore, there is a need for a careful evaluation of the projects to prevent the waste of resources on economically unfeasible projects.

When Two Projects Both Require the Total Use of the Same