Sensitivity Analysis May Also Be Called

question 61

Multiple Choice

Sensitivity analysis may also be called

• A)postoptimality analysis.
• B)parametric programming.
• C)optimality analysis.
• D)All of the above
• E)None of the above

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Definitions:

Average-Variable-Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output is altered.

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total quantity of produced output.

Average Total Cost

The aggregate expense of manufacturing (comprising both fixed and variable expenditures) divided by the overall amount produced.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.