Given that the market share of a firm depends on many unpredictable factors, a firm will use a _____ economic model to estimate the market share for one of its products.
A) deterministic
B) dynamic
C) qualitative
D) probabilistic
E) comparative statics

Question

Quizplus · Accepted Answer

A probabilistic economic model involves estimating the likelihood of different outcomes based on probability distributions of various uncontrollable factors. In this case, the uncontrollable factor is the market share of the firm's product, which is subject to many unpredictable factors. Therefore, a probabilistic economic model is the most appropriate choice for estimating the firm's market share.

Given That the Market Share of a Firm Depends on Many