Perfectly ________ Correlated Series Move Exactly Together and Have a Correlation

question 20

Multiple Choice

Perfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions and have a correlation coefficient of ________.

• A) negatively; -1; positively; +1
• B) negatively; +1; positively; -1
• C) positively; -1; negatively; +1
• D) positively; +1; negatively; -1

---

Definitions:

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.

ATC

Average Total Cost, the total cost of production divided by the quantity of output produced.

Economic Profits

The surplus that remains after all operational costs, including opportunity costs, are subtracted from total revenues.

Economic Profits

Economic Profits represent the surplus after subtracting both the explicit and implicit costs from total revenue, depicting a firm's advantage beyond the normal returns.