CSCP Exam - Question 414

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.