Which of the following is a nonlinear cost function?
A) increase in revenues with increase in sales in units
B) total fixed cost of $25,000
C) variable cost of $5 per unit
D) learning curve function

Question

Quizplus · Accepted Answer

A learning curve function is nonlinear because it represents a decreasing trend in cost per unit as the cumulative production increases. The other options are all linear cost functions.

Which of the Following Is a Nonlinear Cost Function