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Next: 3.6 Up: 3. Previous: 3.4.2

3.5 What makes a line a line?

For the cost function example, the assumption is that cost increase between 1 and 2 units being produced is identical to the cost increase between 50 and 51 units, and the cost increase between 500 and 501 units.

Indeed the defining characteristic of a straight line from a modeling perspective, is that for every one unit change in x, y changes by a fixed amount regardless of the value of x. The change in y, is the slope of the line.

Do you believe this is likely?


next up previous
Next: 3.6 Up: 3. Previous: 3.4.2
Richard Waterman
1999-05-03