Sensitivity Analysis Is Used by a Firm To

question 23

Multiple Choice

Sensitivity analysis is used by a firm to:

• A) analyze the impact of a change in the price of the good on the demand for the good.
• B) examine the static effects of an economic decision on the firm's profitability.
• C) analyze the social costs and benefits of an economic decision.
• D) examine the opportunity costs of an economic decision.
• E) examine how an optimal decision is affected if key economic facts vary.