The Graph Below Shows Estimated World Population for the Perio $4000 \mathrm { BC } - 2000$

question 74

Essay

The graph below shows estimated world population for the perio $4000 \mathrm { BC } - 2000$ AD. Note that the
logarithm of the world population and not actual population is plotted on the vertical axis. This means, for example, that when the graph reaches 7 on the vertical scale, world population is \(10 ^ { 7 }\])
and when the graph reaches 9 on the vertical scale, world population is 109.

Why must the graph be interpreted with care? If the graph is not interpreted with care what misleading impression
might one have of world population during the period 4000 BC - 2000 AD? Why do you think that the graph was presented in this form?

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Definitions:

Output Level

The total quantity of goods or services produced by a firm or industry within a specific period.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, which decreases as more units are produced.

Output Level

The quantity of goods or services produced by a firm, industry, or economy in a given time period.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.