Refer to Figure 7

question 18

Multiple Choice

Refer to Figure 7.6.Which graph represents decreasing returns to scale?

• A) A
• B) B
• C) C
• D) Both graph A and graph C

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Definitions:

Positively Related

A relationship where an increase in one variable leads to an increase in another.

Negatively Related

Describes a relationship where an increase in one variable leads to a decrease in another variable.

Unrelated

Not connected or associated with each other in any way.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.