All else equal, the flatter the marginal cost curve, the ________ sensitive quantity produced is to changes in demand and, thus the_______ valuable an accurate forecast is to the firm.

Question

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The flatter the marginal cost curve, the more sensitive quantity produced is to changes in demand. This is because a small change in demand will lead to a larger change in quantity produced when the marginal cost curve is flatter. As a result, an accurate forecast is more valuable to the firm because it can help the firm to better anticipate changes in demand and adjust its production accordingly.

All Else Equal, the Flatter the Marginal Cost Curve, the ________