The shadow price of a scarce resource is $4.80. Which of the following statements is correct? A. The change in contribution of $4.80 per extra unit of the scarce resource made available is only valid if the organisation is prepared to pay in excess of the normal variable cost for the scarce resource.
B. Contribution would decrease by $4.80 if one extra unit of the scarce resource was made available.
C. The organisation should be prepared to pay $4.80 for any extra available units of the scarce resource.
D. Contribution would increase by $4.80 if one extra unit of the scarce resource was made available. |