A Prediction Market Is A

question 18

Multiple Choice

A prediction market is a:

• A) perfectly functioning futures market, so that futures output can be interpreted as probabilities and used to make predictions.
• B) perfectly functioning futures market, so that futures prices can be interpreted as probabilities and used to make predictions.
• C) speculative market carefully designed so that output can be interpreted as probabilities and used to make predictions.
• D) speculative market carefully designed so that prices can be interpreted as probabilities and used to make predictions.

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Definitions:

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Patent

A legal document granted by the government, giving an inventor exclusive rights to use, make, and sell an invention for a certain period of time.

Business Process

A set of activities or tasks that organizations perform in a repeatable and systematic manner to achieve designated goals.