Explain Why It Is Appropriate to Connect the Points on a Line

question 20

Essay

Explain why it is appropriate to connect the points on a line graph, but the points on a scatter plot should not be connected.

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Definitions:

Decreasing-cost Industry

An industry in which costs per unit decrease as the scale of production increases.

Long-run Supply Curve

A curve that shows the relationship between the price of a good and the quantity supplied over a long period, taking into account all possible adjustments including entry and exit of firms.

Input Prices

The costs of raw materials and components required to produce a good or service.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.