Question
A factory that manufactures basketballs spends
on each basketball that it produces.
Which of the following describes the rate of cost growth at the factory?
A. nonlinear
B. neither linear nor nonlinear
C. linear
D. both linear and nonlinear
Which of the following describes the rate of cost growth at the factory?
A. nonlinear
B. neither linear nor nonlinear
C. linear
D. both linear and nonlinear
Ask by Burns Parry. in the United States
Jan 05,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The cost growth is linear.
Solution

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Bonus Knowledge
The rate of cost growth at the factory is linear because each basketball produced incurs a fixed cost of
. This means that as the number of basketballs produced increases, the total cost increases at a constant rate, making the relationship a straight line when graphed.
In practical terms, if the factory decides to produce 10 basketballs, the cost would be
. If they produce 100 basketballs, it would be
. This consistent cost per unit is the hallmark of linear growth!