Which Method(s) of Risk Analysis Have Both Pros and Cons

question 7

Multiple Choice

Which method(s) of risk analysis have both pros and cons attached?

• A)Quantitative
• B)Qualitative
• C)Stringent
• D)A and B

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Definitions:

MRP

Marginal Revenue Product, the additional revenue generated by the employment of one additional unit of a factor of production.

MPP

Marginal Physical Product, the change in total output of a good that results from a one-unit change in input, holding all other inputs constant.

Substituted

The act of replacing one good or service with another due to changes in price, preference, or other variables.

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another related good or service.