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How about the increase in projected sales volume resulting from the new plant? This should be considered:

A) Irrelevant
B) An incremental benefit
C) An incremental cost
D) Market expansion impact

User Hihikomori
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1 Answer

5 votes

Final answer:

The increase in projected sales volume due to a new plant is an incremental benefit, representing significant ongoing additional revenues and possibly even greater unmeasured advantages related to market competition and knowledge transfer. So, the correct answer is option b.

Step-by-step explanation:

The increase in projected sales volume resulting from the new plant should be considered an incremental benefit. This is because it represents additional revenues that are directly attributable to the investment in the new plant. This type of financial gain is significant enough to merit consideration, as we're talking about a few hundred billion dollars. It's also important to note that such an increase in sales volume usually carries on into the future, adding value to the business over time.

Moreover, the impact of the increased sales might even be underestimated because certain benefits, such as enhanced variety for consumers, greater market competition, and the transfer of knowledge across borders are challenging to quantify in economic statistics. These factors, which include improvements in production, technology, management, finance, and law, often strengthen the business's position in the market and boost long-term profitability.

So, the correct answer is option b.

User Colin Lamarre
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