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An "Economy of Scale" Function Is an Example of a Linear

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An "economy of scale" function is an example of a linear cost function.

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Definitions:

Price Elasticity of Demand

An assessment of the variation in the amount of a product desired in relation to fluctuations in its cost.

Major League Baseball

The professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Linear Demand Function

A mathematical representation showing a straight-line relationship between the quantity demanded of a good and its price.

Price Elasticity of Demand

A gauge for understanding how sensitive the demand for a product is to price changes.

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