If the Cost of Producing a Good Goes Down,this Will

question 208

True/False

If the cost of producing a good goes down,this will cause the equilibrium price of the good to go down and the equilibrium quantity of the good to go up.

---

Definitions:

Expected Rate of Return

The anticipated return on an investment, taking into account the probability of different possible returns.

Perfectly Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases with a correlation coefficient of -1.

Risk-free Portfolio

A portfolio consisting of investments that are considered to have zero risk, often associated with government securities.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values differ from the mean.