Within the relevant range of activity the behavior of total costs is assumed to be
A) linear and upward sloping.
B) linear and downward sloping.
C) curvilinear and upward sloping.
D) linear to a point and then level off.

Question

Quizplus · Accepted Answer

Within the relevant range of activity, total costs are assumed to be linear and upward sloping. This means that as production or activity level increases, total costs increase at a constant rate.

Within the Relevant Range of Activity the Behavior of Total