Which statement describes step-cost behaviour?
A) discontinuous
B) displays a constant level of cost for a range of output and then jumps to a higher level at some point
C) must be purchased in chunks
D) all of the above describe step-cost behaviour

Question

Quizplus · Accepted Answer

Step-cost behavior is characterized by all the mentioned features: it is discontinuous, shows a constant level of cost within certain output ranges before jumping to a higher level, and often involves costs that must be incurred in chunks.

Which Statement Describes Step-Cost Behaviour