TABLE 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced

question 346

Multiple Choice

TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression.
-Referring to Table 14-5, what are the predicted sales (in millions of dollars) for a company spending $100 million on capital and $100 million on wages?

• A) 15,800.00
• B) 16,520.07
• C) 17,277.49
• D) 20,455.98

Understand the concepts of fixed, variable, and total costs in production.

Analyze the relationship between output and costs using average and marginal measures.

Identify the effects of labor and capital inputs on production costs.

Assess how changes in production levels affect total, average, and marginal costs.

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Definitions:

Customer Needs

The desires, requirements, or necessities that a customer expresses, which a product or service aims to fulfill.

Deprivation

A state of lacking or doing without something considered to be a necessity, often associated with poverty or lack of access to basic resources.

Marketplace

A physical or virtual venue where buyers and sellers come together to exchange goods and services.

Loyalty Program

A marketing strategy that rewards, and therefore encourages, loyal buying behavior, which is beneficial to the business.