What assumption about the behaviour of total costs occurs within the relevant range of activity?
A)linear and upward sloping
B)linear and downward sloping
C)curvilinear and upward sloping
D)horizontal

Question

Quizplus · Accepted Answer

Within the relevant range of activity, total costs are assumed to be linear (as opposed to curvilinear) and upward sloping (as opposed to horizontal or downward sloping). This means that as activity increases, total costs will increase at a consistent rate.

What Assumption About the Behaviour of Total Costs Occurs Within