A problem that has fixed cost as well as variable cost per unit, depending on the level of that activity, is usually formulated as a
A) set covering problem
B) knapsack problem
C) fixed charge problem
D) traveling salesman problem

Question

Quizplus · Accepted Answer

Fixed charge problems involve scenarios where there is a fixed cost that does not change with the level of activity, as well as a variable cost that does change with the level of activity. This is characteristic of the fixed charge problem.

A Problem That Has Fixed Cost as Well as Variable