When two projects both require the total use of the same limited economic resource, the projects are generally considered to be:
A)independent.
B)marginally proﬁtable.
C)mutually exclusive.
D)acceptable.
E)internally proﬁtable.

Question

Quizplus · Accepted Answer

When two projects require the total use of the same limited economic resource, the projects are said to be mutually exclusive. This means that choosing one project will result in the exclusion of the other, since both cannot be pursued simultaneously given the limited economic resource. Therefore, the choice of one project precludes the other.

When Two Projects Both Require the Total Use of the Same