If the Correlation Coefficient Between the Independent Variable X and the Dependent

question 23

True/False

If the correlation coefficient between the independent variable x and the dependent variable y is 0.87, then the best fitting line would have a slope equal to 0.87.

---

Definitions:

Total Revenue

The total income generated by a firm or economy from its sale of goods and services, calculated before any expenses are subtracted.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit, often involving analysis of marginal costs and marginal revenues.

Shutdown

The short-term decision by a firm to cease production due to operating at a loss, where total revenue is not covering variable costs.

Implicit Costs

These refers to the opportunity costs that are not directly paid or incurred but represent the foregone benefits from using resources in a particular way.