Which of the following statements is TRUE regarding main products, byproducts, and scrap?
A)Product classifications do not change over the short-run.
B)Product classifications do not change over the long-run.
C)Product classifications may change over time.
D)The cause-and-effect criterion determines the classification.
E)The distinctions between main products, byproducts, and scrap are well-established in practice.

Question

Quizplus · Accepted Answer

Product classifications may change over time depending on production processes and market demand. For example, a byproduct may become a main product if there is a shift in consumer preferences or if the resource for the main product becomes scarce. The cause-and-effect criterion is one way to determine the classification, but it is not the only factor to consider. The distinctions between these classifications are also not always clear-cut in practice.

Which of the Following Statements Is TRUE Regarding Main Products