Which of the Following Is Not an Advantage of the Simple

question 25

Multiple Choice

Which of the following is not an advantage of the simple exponential smoothing model over the N-period moving average model?

• A) Old data are never dropped.
• B) Older data are given progressively less weight.
• C) Calculation is simple.
• D) None of these answers are correct.

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Definitions:

Marginal Cost

The expenses associated with creating an extra unit of a good or service.

Natural Monopoly

A market condition where the most efficient scale of production is achieved when a single firm supplies the entire market due to high fixed or start-up costs.

Price Discrimination

A pricing strategy where a firm sells the same product at different prices to different groups of consumers.

Monopoly Power

The ability of a firm to control market prices and output levels, typically due to the lack of significant competition.