Which of the following is not a plausible explanation of why variable costs often behave in a curvilinear fashion?
A) Labor specialization
B) Overtime wages
C) Total variable costs are constant within the relevant range
D) Availability of quantity discounts

Question

Quizplus · Accepted Answer

This is not a plausible explanation because if total variable costs were constant within the relevant range, then they would not exhibit a curvilinear pattern. Labor specialization (A) and overtime wages (B) can increase variable costs in a non-linear manner as production increases. Availability of quantity discounts (D) may also result in non-linear costs as the cost per unit may decrease after a certain quantity of production.

Which of the Following Is Not a Plausible Explanation of Why