The graph of variable costs that behave in a curvilinear fashion will
A) approximate a straight line within the relevant range.
B) be sharply kinked on both sides of the relevant range.
C) be downward sloping.
D) be a stair-step pattern.

Question

Quizplus · Accepted Answer

Variable costs that behave in a curvilinear fashion will approximate a straight line within the relevant range. This means that as the level of output increases, the variable cost per unit will increase, but at a decreasing rate. The graph will appear curved but will still be approximately linear within the relevant range.

The Graph of Variable Costs That Behave in a Curvilinear