Which of These Statements About the One-Period Model Is Best

question 23

Multiple Choice

Which of these statements about the one-period model is best?

• A) Purchasing a quantity with the highest expected payoff will result in a positive payoff regardless of demand during the period.
• B) The loss per unit cannot exceed the profit per unit.
• C) If demand exceeds the purchased quantity then the payoff exceeds the expected payoff.
• D) The expected payoff is always less than the actual payoff.

---

Definitions:

Networking

The act of establishing and maintaining professional relationships or connections with others for mutual benefit.

Expert Power

The influence and authority someone holds as a result of their expertise or knowledge in a specific area.

Centrality

In network analysis, centrality measures the importance or influence of a node within a network, determining the most connected or pivotal points.

Substitutability

The ease with which one good, service, or worker can be replaced with another.