Despite the Insights That PERT Provides,there Are Still Practical Limitations

question 25

Multiple Choice

Despite the insights that PERT provides,there are still practical limitations that impact its usefulness.All of the following difficulties are associated with the use of PERT EXCEPT: 

• A) It often requires more effort to generate three estimates than one. 
• B) It highlights uncertainty in project duration 
• C) It does not accurately address the case when two activities both need to be accomplished before a third can begin. 
• D) There is no assurance that three estimates are any more accurate than one

---

Definitions:

Short Run

A time period in economics where at least one input is fixed, affecting production capacity.

ATC

Average Total Cost refers to the total cost of production divided by the quantity of output produced.

MC

Short for Marginal Cost, it refers to the additional cost incurred by producing one more unit of a product or service.

Total Revenue

The total income generated by a firm from the sale of its goods and services, calculated as the selling price per unit times the number of units sold.