Simulation Is Used to

question 53

Multiple Choice

Simulation is used to

• A) find possible worst case values for the dependent variable(s).
• B) find worst case and best case values for the dependent variable(s).
• C) find distribution information for the dependent variable(s).
• D) find median values for the dependent variable(s).

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Definitions:

Minimum ATC

Minimum ATC, or minimum average total cost, is the lowest point on the average total cost curve, representing the most efficient scale of production for a firm.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, which may include high capital requirements, brand loyalty, or regulatory policies.

Marginal Costs

The cost of producing one additional unit of a good or service.

Profit-Maximizing

The process by which a company determines the price and output level that returns the greatest profit.