Assume a firm would like to expand its product line. A complete expansion would cost $100 million, but the firm can raise only $75 million in financing. What is this best classified as?

Question

Quizplus · Accepted Answer

This situation is best classified as a constraint because the firm is limited by the amount of financing it can raise, which restricts its ability to fully expand its product line as desired.

Assume a Firm Would Like to Expand Its Product Line