Slope =change of y over change of x
(2, −5) and (4, 1)
M= 1-(-5)/4-2
M=6/2
M=3
So the slope is 3.
If you need the equation
Y=mx+b
(4, 1)
1= 3(4)+b
1=12+b
1-12=b
-11=b
So equation
Y=3x-11
Option (A) is the correct answer: Panel a illustrate Increasing Return to Scale and panel b illustrate Constant Return to Scale.
<u>Return to Scale:</u>
It is the Variation or change in productivity that is the outcome from a proportionate increase of all the input.
I<u>ncreasing Return to Scale:</u>
An increasing return to scale occurs when the output increase by a larger proportion than the increase in inputs during the production process. For Example: if input is increased by 3 times but output increases by 3.75 times, then the firm or economy has experienced an increasing return to scale. This increase is due to many reasons like division external economies of scale.
<u>Constant Return of Scale:</u>
Constant Return of Scale refers to the production situation in which output increases exactly in the same proportion in which factors of production are increased. In simple words, if factors of production are doubled output will also be doubled. In this case, internal and external economies are exactly equal to internal and external diseconomies. This situation arises when after reaching a certain level of production, economies of scale are balanced by diseconomies of scale. For Example: A car wash in which one car wash takes 30 minutes. If there is one wash space and two workers running two 8 hours shifts total product would be 32.
Learn more about Increasing rate of Scale:
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C
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The sample size is 36 because 3x12=36
So the correct answer is C
Good luck with future problems m8
