Given Below Is the Scatter Plot of the Number of Employees

question 48

True/False

Given below is the scatter plot of the number of employees and the total revenue ($millions)of 20 U.S. companies. There appears to be a positive relationship between total revenue and the number of employees.

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Definitions:

Output

The total amount of goods or services produced by a firm or economy.

Total Revenue

The total amount of money a company receives from its business activities before any expenses are subtracted, calculated by multiplying the price per unit by the quantity sold.

Total Cost

The complete cost of production, including both fixed and variable costs.

Quantity Effect

Refers to the change in consumer behavior resulting from a change in the price of a product, where the quantity demanded increases as the price decreases and vice versa.