In a/an ________,the graph of total costs is not a straight line within the relevant range.
A)cost object
B)learning curve
C)experience curve
D)step cost function
E)nonlinear cost function

Question

Quizplus · Accepted Answer

A nonlinear cost function is one where the graph of total costs is not a straight line within the relevant range. This can happen when costs increase at a nonconstant rate, or when there are fixed costs and variable costs that interact in a nonlinear way. For example, if a company has high fixed costs of production but relatively low variable costs, its total costs may exhibit a nonlinear pattern because as it produces more units, the impact of the fixed costs on the total costs declines, but the variable costs continue to rise.

In A/an ________,The Graph of Total Costs Is Not a Straight