Which of the following statements is true when there is only one scarce resource?
A)Choose the product that gives the largest contribution per unit of the scarce resource used.
B)Choose the product that gives the smallest contribution per unit of the scarce resource used.
C)Choose the product that gives the largest contribution per unit of all of the resources used.
D)Choose the product that gives the smallest contribution per unit of all of the resources used.

Question

Quizplus · Accepted Answer

When there is only one scarce resource, we should choose the product that gives the largest contribution per unit of the scarce resource used. This means that we should choose the product that maximizes our efficiency in utilizing the scarce resource, and therefore maximizes our overall output or profit. Choosing the product with the smallest contribution per unit of the scarce resource used would be inefficient and could result in lower overall output or profit.

Which of the Following Statements Is True When There Is