One of the Primary Feeds for Beef Cattle Is Corn

question 15

Multiple Choice

One of the primary feeds for beef cattle is corn. The following table presents the average price in dollars for a bushel of corn and a pound of ribeye steak for 10 consecutive months
$$\begin{array} { c c } \hline \text { Corn Price } ( \$ / b u ) & \text { Ribeye Price } ( \$ / \text { b) } \\\hline 6.40 & 13.20 \\6.08 & 13.21 \\6.11 & 13.30 \\6.37 & 13.55 \\5.91 & 12.57 \\6.22 & 13.37 \\6.49 & 13.54 \\6.20 & 13.37 \\6.00 & 12.88 \\6.04 & 12.71 \\\hline\end{array}$$
Compute the correlation coefficient between the corn price and the ribeye price.

• A)0.815
• B)0.965
• C)0.664
• D)0.185

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Definitions:

Unavoidable Costs

Expenses that a company must pay regardless of its level of production or sales activity, also known as fixed costs.

Long Run Level

A period in economics where all inputs or production factors can be varied, and all costs are variable, allowing for full adjustment to changes.

Market Price

The existing cost at which one can buy or sell a service or asset.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.