When an Analyst Uses Measures of Past Profitability to Forecast

question 36

Short Answer

When an analyst uses measures of past profitability to forecast the firm's future profitability the expectation is that those revenues,gains,expenses and losses will ____________________.

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Definitions:

PPCs (Production Possibility Curves)

Graphical representations that show the maximum possible output combinations of two goods that an economy can achieve when all resources are fully and efficiently utilized.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency and productivity.

Gains From Trade

The extra output that trading partners obtain through specialization of production and exchange of goods and services.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors, leading to more efficient international trade.