Step costs
A) remain the same within the relevant range.
B) have an increased fixed component at specified intervals.
C) increase in direct proportion to increases in output.
D) None of these are correct.

Question

Quizplus · Accepted Answer

Step costs have a fixed component that remains constant within a certain range of activity levels but increase at specified intervals once that range is exceeded. These intervals are called "steps," hence the name "step costs."

Step Costs