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

Question

Quizplus · Accepted Answer

When two projects require the total use of the same limited economic resource, they are said to be mutually exclusive. This means that investment in one project precludes investment in the other. Therefore, only one of the two projects can be undertaken, and the choice between the two depends on their respective profitability and feasibility.

When Two Projects Both Require the Total Use of the Same