List at Least Four Reasons for the Construction of a Simulation

question 45

Essay

List at least four reasons for the construction of a simulation model as opposed to the study of the system itself, or a physical replica of the system.

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Definitions:

Competitive Firms

Businesses that operate in a market environment where they vie with others to offer goods or services, focusing on price, quality, and innovation.

Monopolists

Individuals or entities that hold a monopoly, controlling the entire supply of a good or service in a particular market, eliminating competition.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to market conditions.

Plant Size

The physical capacity or scale of a manufacturing facility, which can influence production output and operational efficiency.