Which of the Following Is True According to the Text

question 9

Multiple Choice

Which of the following is true according to the text?

• A) Forecasts in recent years have been very accurate.
• B) Use of the absolute forecast error as a percent of the realized value is a good measure to use in detecting a forecast bias.
• C) Forecasting errors are smaller when focused on longer term periods.
• D) None of the above.

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Definitions:

Consumer Surplus

The differentiation in the total expenditure consumers are willing and have the economic means to allocate for a good or service, versus what they effectively allocate.

Perfect Competition

A market structure characterized by a complete absence of rivalry among firms, where no single firm can influence the market price or product quality, leading to optimal allocation of resources.

Natural Monopoly

A market structure where a single supplier is most efficient due to the high fixed or startup costs of operating, making it impractical for new entrants to compete.

Returns to Scale

Describes how output changes in response to a proportional increase in all inputs in the production process; can be classified as increasing, constant, or decreasing.