The CPM/PERT Technique Depicts Pathways That Link Events Together

question 27

Multiple Choice

The CPM/PERT technique depicts pathways that link events together. The pathway that actually determines how long a project will take is designated as the

• A)"event path"
• B)"critical path"
• C)"leader path"
• D)none of the above

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Definitions:

U-Shaped Marginal Cost

A graphical representation of the cost incurred to produce one more unit of a good, which decreases at first due to increasing returns but eventually increases due to decreasing returns.

Profit-Maximizing Output

The quantity of output at which a firm achieves the maximum possible profit, determined where marginal revenue equals marginal cost.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, no barriers to entry or exit, and the firm sells a homogeneous product.