Which of the Following Is True Regarding Simulation

question 9

Multiple Choice

Which of the following is true regarding simulation?

• A) Small problems can be done by hand.
• B) Most simulations are computerized.
• C) Real-world complications can be included in simulation models.
• D) Simulation is most suitable where standard analytical models are too complex.
• E) All of the above are true.

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Definitions:

Diminishing Marginal Productivity

A principle in economics that indicates that as one inputs more of a factor of production while holding other factors constant, the additions to output will eventually decrease.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in per-unit cost with increasing output.

Specialization

The process by which individuals, firms, or countries focus on producing a certain type of goods or services, often to achieve greater efficiencies or quality.