The opportunity loss function gives us information about
A)the variable costs we should expect to incur.
B)cost and revenues as a function of demand.
C)the number of products we should expect to sell.
D)profits lost if demand is less than the break-even point.

Question

Quizplus · Accepted Answer

The opportunity loss function is used to calculate the potential profits that would be lost if demand is less than the break-even point. It helps businesses make informed decisions on pricing strategies and product offerings. Therefore, the correct choice is D.

The Opportunity Loss Function Gives Us Information About