The Main Difference Between PERT and CPM Is That

question 34

Multiple Choice

The main difference between PERT and CPM is that:

• A) PERT is more accurate than CPM.
• B) PERT assumes that activity durations are known.
• C) PERT ignores activity costs.
• D) CPM assumes activity durations can vary.
• E) PERT employs three time estimates for each activity.

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Definitions:

Total Revenue Curve

A graphical representation showing how a firm's total revenue changes with variations in the quantity of goods or services sold.

Price-Taking Behavior

The action of accepting the market price as given, typical of participants in a perfectly competitive market who cannot influence prices.

Slope

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

Marginal Revenue Curve

A graph that displays how marginal revenue varies as output changes.