Assume the Least Squares Equation Is = 10

question 33

Multiple Choice

Assume the least squares equation is = 10 + 20X. What does the value of 10 in the equation indicate?

• A)When X = 0,Y = 10.
• B)X increases by 10 for each unit increase in Y.
• C)Y increases by 10 for each unit increase in X.
• D)It is the error of estimation.

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Definitions:

Average Total Cost

The average cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Perfect Competition

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

Long-Run Equilibrium

A state in which all firms in a market are earning normal profits, and there is no incentive for firms to enter or exit the market.

Marginal Cost

Marginal cost is the additional cost incurred by producing one additional unit of a good or service.