If Sarah Worked for a Hollywood Prediction Market That Forecasts

question 6

Multiple Choice

If Sarah worked for a Hollywood prediction market that forecasts opening-weekend film revenues, what factors should she consider in her forecast?
I. the number of screens at movie theaters in the country
II. the popularity of the cast of the movie
III. the movies' special effects budget, and its director and producer

• A) I only
• B) I and III only
• C) II and III only
• D) I, II, and III

Recognize the importance of contribution margin in making decisions about product discontinuation or continuation.

Determine the relevance of sunk costs in decision-making processes.

Calculate the differential effect on profit from accepting special pricing orders.

Understand the concept of target costing and its application in a competitive marketplace.

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Definitions:

Exclusive Jurisdiction

A legal term indicating that only a specific court has the power to adjudicate a particular case or issue.

Federal Court

A court established by the federal government that has jurisdiction over questions of federal law and disputes between states or between the U.S. and foreign governments.

Diversity Jurisdiction

A legal principle allowing federal courts to hear cases where the parties are from different states or countries and the matter in dispute exceeds a specific monetary threshold.

Damages

Financial compensation awarded to a party in a legal case for losses or injuries suffered due to the actions or negligence of another.