Table 102
the Manager of a Pizza Shop Must Forecast Weekly

question 1

Multiple Choice

Table 10.2
The manager of a pizza shop must forecast weekly demand for special pizzas
so that he can order pizza shells weekly. Recent demand has been:
$$\begin{array} { | c | c | } \hline \text { Week } & \begin{array} { c } \text { No. Special } \\\text { Pizzas }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 53 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$$
-Use the information from Table 10.2.Using a four-week moving average,what is the forecast for week 7?

• A) less than or equal to 58
• B) greater than 58 but less than or equal to 60
• C) greater than 60 but less than or equal to 62
• D) greater than 62

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Definitions:

Long-Run Equilibrium

A situation in economic analysis where all inputs can be adjusted, and firms have no incentive to enter or exit the industry.

Economic Profit

The total revenue minus total costs, including both explicit and implicit costs.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single party can dictate prices or market conditions.

Price-Taker Industry

An industry in which individual firms have no control over the price set by the market and must accept the prevailing price.