The Purpose of Using the Moving Average Is to Take

question 6

True/False

The purpose of using the moving average is to take away the short-term seasonal and random variation,leaving behind a combined trend and cyclical movement.

---

Definitions:

Supply Function

A mathematical relationship that describes the quantity of goods that producers are willing and able to sell at different prices.

Cost Function

A mathematical formula used to calculate the total cost incurred by a company to produce a given level of output.

Maximizing Profits

The process by which a company determines the price and production level that generates the most profit.

Capitalistic Firm

A business entity operating in a capitalist economy, where the means of production are privately owned and operated for profit.