L-shaped graphs are visual representations that display a relationship between two variables, typically showing a sudden change in direction. They often appear in economics, particularly in the analysis of cost functions or production efficiency. The "L" shape indicates that there is a period of constant output or cost, followed by a sharp increase or decrease. These graphs are useful for illustrating concepts like diminishing returns or fixed costs. The horizontal part of the "L" represents stability, while the vertical part signifies a significant change. L-shaped graphs help simplify complex data, making it easier to understand trends and relationships in various fields, including economics and business.