Final answer:
The scale factor determines the position of point P' relative to point P.
Step-by-step explanation:
The scale factor between 0 and 1 determines the size and position of point P' relative to point P. If the scale factor is 0, point P' will be at the same location as point P. If the scale factor is between 0 and 1, point P' will be to the left of point P. Therefore, option B is correct.