Which of the Following Statements About Simulation Is BEST

question 1

Multiple Choice

Which of the following statements about simulation is BEST?

• A) Tools like optimization and regression analysis work best when they are simulated.
• B) Simulation permits managers to test the effects of new policies and procedures without disrupting customer service.
• C) As computers have increased in power, simulation results have become less accurate.
• D) Computer-based simulation is the only "true" simulation.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often seen as a measure of producer welfare.

Consumer Surplus

The disparity between the cost consumers are prepared to pay for a good or service and the cost they actually encounter.