If the Independent Variable Is Production Volume and the Dependent

question 27

Multiple Choice

If the independent variable is production volume and the dependent variable is total manufacturing cost, a coefficient of determination of .90 indicates

• A)90 percent of the change in manufacturing cost can be explained by the change in the production volume.
• B)90 percent of the change in volume is caused by changes in manufacturing cost.
• C)10 percent of the change in volume is caused by changes in manufacturing cost.
• D)costs will change by 90 percent of the change in volume.

---

Definitions:

Legal Barriers

Restrictions established by law or regulation that control how businesses operate, often to limit competition or protect consumers.

Short Run

In economics, a period in which at least one factor of production is fixed, allowing for limited adjustments to changes in demand or supply.

Long Run

A period in economics where all resources and inputs can be fully adjusted or changed, contrasting with the short run where some are fixed.

Marginal Revenue

The revenue uplift experienced by selling an additional unit of a product or service.