In a scenario where a company has to choose between investing in marketing or product development, which principle of resource allocation is being applied? (2023)
Practice Questions
1 question
Q1
In a scenario where a company has to choose between investing in marketing or product development, which principle of resource allocation is being applied? (2023)
Scarcity.
Efficiency.
Equity.
Sustainability.
The principle of scarcity is applied when a company must choose between two competing investments due to limited resources, making option 0 correct.
Questions & Step-by-step Solutions
1 item
Q
Q: In a scenario where a company has to choose between investing in marketing or product development, which principle of resource allocation is being applied? (2023)
Solution: The principle of scarcity is applied when a company must choose between two competing investments due to limited resources, making option 0 correct.
Steps: 5
Step 1: Understand that a company has limited resources, like money and time.
Step 2: Recognize that the company has two options: investing in marketing or product development.
Step 3: Realize that because the company can't afford to do both, it must make a choice.
Step 4: Identify that this situation is an example of scarcity, where resources are not enough to satisfy all wants.
Step 5: Conclude that the principle of scarcity is being applied when deciding between the two investments.
