One of the Primary Feeds for Beef Cattle Is Corn

question 24

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. $$\begin{array} { c c } \hline \text { Corn Price } ( \$ / b u ) & \text { Ribeye Price } ( \$ / l b ) \\\hline 6.09 & 12.59 \\6.45 & 13.23 \\6.32 & 13.62 \\6.25 & 12.89 \\6.33 & 13.22 \\6.53 & 14.10 \\\hline\end{array}$$ Compute the least-squares regression line for predicting the ribeye price from the corn price.

• A) y=-5.491+0.3372 x
• B) y=2.9654-5.491 x
• C) y=5.491+0.3372 x
• D) y=-5.491+2.9654 x

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Definitions:

Profit-Maximizing

The approach by which an enterprise figures out the optimal pricing and production levels for the highest profit return.

Marginal Revenue

The supplementary income resulting from the sale of one more good or service unit.

Price-Searcher Firm

A company that operates in a market with differentiated products and has some control over the price of its product because it faces a downward-sloping demand curve.

Profit Maximization

is the process or strategy by which a firm adjusts its production and sale levels to achieve the highest possible profit.