Forecasting Is Not a Function Which Contributes To

question 136

Multiple Choice

Forecasting is not a function which contributes to:

• A) deciding which business market to pursue
• B) deciding which product to produce
• C) deciding how bonuses should be allocated
• D) deciding how much inventory to carry
• E) deciding how many people to hire

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, keeping all other inputs constant.

Variable Resource

An input in production that can be adjusted in the short term to change the level of output.

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.