Consider a stage doing batching process with a setup. The curve below depicts the relation between the batch size and the stage capacity. Which of the option below correctly describes the meaning of the curve? $($Difficulty Level $-$ Easy$)$

Consider a stage doing batching process with a setup. The curve below depicts the relation between the batch size and the stage capacity. Which of the option below correctly describes the meaning of the curve? $($Difficulty Level $-$ Easy$)$

Stage capacity increases in batch size only when the batch size is small.

Stage capacity increases in batch size. But the marginal improvement has a decreasing trend.

Stage capacity increases in batch size. The marginal improvement also has an increasing trend.

Stage capacity increases in batch size proportionally.