Question

A factory that manufactures basketballs spends $3 on each basketball that it produces.

Which of the following describes the rate of cost growth at the factory?
A.linear
B.nonlinear
C.neither linear nor nonlinear
D.both linear and nonlinear

Answer 1

C

Explanation:

Answer 2

C. Neither linear nor non linear

Explanation:

The company spends $3 on each basketball it produces, which means if the company produces
`b` basketballs, then the amount
`y` it would have spent is

`y=3b`.

Now, the rate of cost growth is the rate of change, or the derivative of the amount spent
`y`; therefore,

`(dy)/(db) =(d(3b))/(db) = 3 (db)/(db) =3`

which is a constant, which means the rate of cost growth is not increasing. Therefore, rate of cost growth at the factory is neither linear nor nonlinear.