Which of the Following Is TRUE Regarding the Use of Simulation

question 48

Multiple Choice

Which of the following is TRUE regarding the use of simulation?

• A) It is always very easy to build a simulation model.
• B) It may interfere with real-world systems.
• C) It always yields optimal solutions.
• D) It allows time-compression in testing major policy decisions.
• E) Few constraints, if any, have to be considered.

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Definitions:

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to consumers in exchange for money.

Total Profit

The overall financial gain made by a business after subtracting all costs from the total revenue generated from its operations.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced.

ATC

Stands for "Average Total Cost," which refers to the total cost divided by the quantity of goods produced, in economics.