Using Certainty Factors, a Rule Declares That IF Competition Is

question 22

Multiple Choice

Using certainty factors, a rule declares that IF competition is strong, CF = 70 AND margins are above 15% CF = 100 THEN sales demand will decline. If both conditions are true, what is the CF of the conclusion?

• A) 100%
• B) 70%
• C) 30%
• D) 21%

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Definitions:

Silk-Screened T-Shirts

T-shirts printed using a technique that forces ink through a mesh screen to create a design.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted to meet changes in the market.

Zero Economic Profit

Occurs when a firm's total revenues are exactly equal to its total costs, including both explicit and implicit costs, indicating no abnormal profit above the normal rate of return.

Continue to Produce

The decision by a business to maintain production activities, often evaluated in the context of profitability and market demand.