The rate of cost growth can be seen as the cost of adding 1 unit of basketball to the output. This cost as we know is $6, given for each basketball produced. Since this is constant, the rate of cost growth is seen as linear. Hence option D is the right choice.
What does linear growth mean?
A quantity grows linearly if it increases by the same amount per unit of time.
What does non-linear growth mean?
A quantity grows non-linearly if the increase in the amount is not the same per unit of time.
How to solve the question?
In the question, we are informed that a factory that manufactures basketballs spends $6 on each basketball that it produces.
We are asked to describe the rate of cost growth at the factory.
The rate of cost growth can be seen as the cost of adding 1 unit of basketball to the output. This cost as we know is $6, given for each basketball produced. Since this is constant, the rate of cost growth is seen as linear. Hence option D is the right choice.
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