An Increase in Forecast Accuracy

Multiple Choice

An increase in forecast accuracy

A) decreases both the overstocked and understocked quantity and decreases a firm's profits.
B) decreases both the overstocked and understocked quantity and increases a firm's profits.
C) increases both the overstocked and understocked quantity and decreases a firm's profits.
D) increases both the overstocked and understocked quantity and increases a firm's profits.