Table 8.5 -Use the Information in Table 8.5. Using the Simple Moving-Average

question 125

Multiple Choice

Table 8.5

-Use the information in Table 8.5. Using the simple moving-average technique for the most recent three months, what will be the forecasted demand for November?

• A) fewer than or equal to 260 units
• B) greater than 260, but fewer than or equal to 275 units
• C) greater than 275, but fewer than or equal to 290 units
• D) more than 290 units

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Definitions:

Economic Profit

The difference between total revenue and both explicit and implicit costs; the profit that exceeds the opportunity cost of resources.

Perfectly Competitive Markets

Markets in which no individual buyer or seller has any significant impact on prices and products are perfect substitutes.

Minimum ATC

The lowest point on the Average Total Cost curve, indicating the most efficient scale of production for a firm in the long run.

Economic Profit

Profits earned by a firm or an individual after subtracting both the explicit costs and opportunity costs of resources employed.