If Merely Rounding Up or Rounding Down a Result for a Decision

question 12

Short Answer

If merely rounding up or rounding down a result for a decision variable is not sufficient when they must be expressed in whole units,then a decision maker might instead use ________ to analyze the situation.

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Definitions:

Slope

The measure of the steepness or/incline of a line, representing the ratio of the vertical change to the horizontal change between two points on the line.

Average Revenue

The revenue generated per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a good or service.