If Two Variables Are Unrelated, a Scatter Diagram of Those

question 462

Multiple Choice

If two variables are unrelated, a scatter diagram of those variables will

• A) be a horizontal line.
• B) have a constant positive slope.
• C) be either a vertical or horizontal line.
• D) be a vertical line.

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Definitions:

ΔTR/Δq

The change in total revenue that results from selling one additional unit of a product, essentially another term for marginal revenue.

Marginal Revenue

Earnings obtained from the sale of one more unit of a good or service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, reaching a state of balance.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to price-takers behavior.