The ability to forecast cause and effect is crucial for a solid economic model since it enables it to both explain past events and foresee potential future ones.
A model of the economy's importance
Its main goal is to describe and examine the prices and volume sold in a market that is competitive. In relation to price and other factors, the equations of the model define the level of supply and demand (for example, income).
What conclusions do economic models draw?
A simplified representation of reality, an economic model enables us to observe, comprehend, and forecast economic phenomena. A model's goal is to simplify a complex, real-world scenario so that only the most important elements remain.
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Answer:
True
Explanation:
One of the assumptions of this analysis is that it assumes a linear dependence on costs and income in the analysis interval.
A very useful tool when making strategic decisions, allowing to analyze different scenarios and individual projects, is the Cost-Volume-Profit.
Analysis (CVP) that works under the premise that variable costs increase in the same proportion that increases the sales of a product, while the fixed ones are independent of the volume of sales.
The CVP is useful both for planning and for evaluating results since it emphasizes the behavior of variable costs and the impact that a variation in sales volume can have on costs and benefits.
It would be the Yeni may either appreciate amor depreciate
