Exhibit 8-1

question 23

Multiple Choice

Exhibit 8-1
(a)

(b)

(c)

-Refer to Exhibit 8-1. Which graph depicts constant returns to scale?

• A) (a)
• B) (b)
• C) (c)

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Definitions:

Slope

The measure of the steepness or incline of a line, indicating the rate of change between two variables.

Linear Regression Equation

An equation that models the linear relationship between a dependent variable and one or more independent variables.

Pearson r

A measure of the linear correlation between two variables, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Number of Crimes

The total incidents of criminal activities recorded in a given area within a specific timeframe.