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All Forecasts Are Built on One of Three Information Bases

question 8

Essay

All forecasts are built on one of three information bases: what people say,what people do,or what people have done.How do market researchers collect information on each of three information bases?


Definitions:

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profits

Profits exceeding the total cost of capital, including both the cost of debt and the opportunity cost of equity capital.

Explicit Costs

Expenses directly incurred in the course of running a business, such as wages and materials.

Economic Costs

The total value of all resources used in the production of a good or service, including both explicit and implicit costs.

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