Provide an Example of a Positive Association and a Negative

question 9

Essay

Provide an example of a positive association and a negative association. Draw a line graph illustrating these associations.

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Definitions:

Economic Profit

The measure of difference between total financial returns and comprehensive charges, taking into both explicit and silent costs.

Market Price

The existing price point for transactions involving an asset or service in the market.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price taking behavior.

Marginal Revenue

The increase in revenue that results from selling one more unit of a product.