Suppose You Are Asked to Do a Sensitivity Analysis of a Project

question 32

Multiple Choice

Suppose you are asked to do a sensitivity analysis of a project when an economy is in recession, what assumptions do you need to make to evaluate the project?

• A)Market share is low, variable costs are high, product price is high.
• B)Market share is low, fixed costs are high, product price is low.
• C)Market share is high, variable costs are high, product price is low.
• D)Market share is low, variable costs are high, product price is low.
• E)Market share is low, variable costs are low, product price is low.

---

Definitions:

Legislation

Laws or statutes that have been formally enacted by a legislature or governing body.

Economic Interest Groups

Organizations that represent the economic interests of their members in political processes, aiming to influence public policy.

Social Interest Groups

Organizations that advocate for the collective interests and ideals of specific social groups, often influencing public policy and opinion.

Private Sector Union

A Private Sector Union represents the interests of employees working in industries and businesses that are not owned or operated by the government.