Chapter 11, Problem 5AA

To determine

To state: Correct word to complete the sentence.

Answer to Problem 5AA

The correct word to complete the sentence is estimate.

Explanation of Solution

Once a product enters the market and stays there for some time, the sales can be ascertained and on the basis of such sales, it becomes easy for the store to estimate when to order to the next set of products for sale. The next order level depends solely on the sale of the first lot of the products. Though the sale, the stores can better evaluate and estimate how many approximate units will be sold further and accordingly they can place their orders.

Economics Concept Introduction

Introduction: Current sales are the only method through which a store can estimate how much further sales a store can make in the near future. It is based on the past sales data.