When a Firm Has Surplus Capacity (That Is, No Resource

Multiple Choice

When a firm has surplus capacity (that is, no resource constraints) , relevant costs for decision-making (for example, determining short-term product mix) will, relative to the situation where the firm faces one or more resource constraints, be:

A) Lower.
B) The same.
C) Greater.
D) It varies—that is, it is impossible to tell without further information.