Using Certainty Factors, a Rule Declares That IF Competition Is

question 38

Multiple Choice

Using certainty factors, a rule declares that IF competition is strong, CF = 70 OR 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:

Marginal Cost

The cost added by producing one extra item of a product, integral for decision-making in production.

Cookies

Small, sweet baked treats, often containing flour, sugar, and some type of oil or fat, sometimes including other ingredients such as chocolate chips or nuts.

Average Total Cost

The total cost per unit of output, calculated by dividing the total cost of production by the quantity of output.

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.