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Explain the Three Time Estimates Used to Characterize Uncertainty of Activity

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Essay

Explain the three time estimates used to characterize uncertainty of activity times in the Program Evaluation and Review Technique (PERT) procedure.


Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Monopoly

A market structure characterized by a single seller dominating the market, with no close substitutes for the product or service offered, leading to limited competition.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Marginal Revenue

The additional income that is gained from selling one more unit of a product or service.

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