Given Forecast Errors of −5, −10, and +15, the MAD

question 72

Multiple Choice

Given forecast errors of −5, −10, and +15, the MAD is:

• A)0.
• B)10.
• C)30.
• D)175.
• E)225.

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Definitions:

Low Point

Refers to the lowest level or value that something can reach, often used in the context of prices, rates, or economic indicators.

Average Total Cost Curve

A graphical representation showing how the total cost per unit of output varies with the level of output, typically U-shaped due to economies and diseconomies of scale.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments, resulting in no economic profit in perfect competition.

Excess Capacity

Refers to the situation where a firm produces at a level less than its potential output, leading to underutilized resources.