Costs may behave in a linear or a nonlinear manner.

Name: Costs may behave in a linear or a nonlinear manner.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Costs can behave either linearly or nonlinearly depending on the factors affecting them. For example, fixed costs may remain constant regardless of changes in production levels, resulting in a linear relationship with the volume of output, while variable costs may exhibit a nonlinear relationship with output due to economies of scale or other factors.

Costs May Behave in a Linear or a Nonlinear Manner