Which of the following is an example of nonlinear cost function?
A) variable-cost functions
B) fixed-cost functions
C) learning curves
D) mixed cost functions

Question

Quizplus · Accepted Answer

Learning curves depict a nonlinear relationship between the cost per unit and the cumulative number of units produced. As the number of units produced increases, the cost per unit decreases at a decreasing rate. This means that the decrease in cost per unit is not proportional to the increase in the number of units produced, and thus, the cost function is nonlinear.

Which of the Following Is an Example of Nonlinear Cost