What Is the DSS Analysis That Checks the Impact of a Change

question 112

Multiple Choice

What is the DSS analysis that checks the impact of a change in a variable or assumption on the model?

• A) Optimization analysis
• B) Goal-seeking analysis
• C) Sensitivity analysis
• D) What-if analysis

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Definitions:

Deadweight Loss

signifies a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Purely Competitive

A purely competitive market is one in which there are many buyers and sellers, all trading homogeneous products, with no single entity able to control the market price.

Market

A virtual or physical place where buyers and sellers come together to trade goods, services, or financial instruments.

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, with goods and services produced at their highest-valued uses.