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Question 414

The question below is based on the following graphs:

Which graph shows the generalized relationship between distance and transportation costs?

    Correct Answer: D

    The generalized relationship between distance and transportation costs typically exhibits a pattern where costs increase at a decreasing rate as distance increases. Initially, costs rise rapidly with increases in distance due to fixed costs and other factors, but the rate of increase diminishes over time as variable costs become spread out over larger distances. This is depicted in graph D, which shows a curve that rises and then levels off, representing the diminishing marginal cost of additional distance.

Discussion
igrdOption: D

must be D

WijithaOption: D

Distance increase price/cost should increase

Wijitha

it not be linear graph/ we can see example in CSCP text book materials