Solved

A New Product Should Be Introduced If Its Profit Contribution

Question 38

Multiple Choice

A new product should be introduced if its profit contribution:


A) exceeds the shadow price of each resource needed to produce it.
B) is less than the opportunity cost of producing it.
C) exceeds the total value of the resources used, valued at their respective shadow prices.
D) is greater than zero.
E) is greater than the profit contributions of the other goods produced by the firm.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions