Within relevant range, cost function which cost does not change in narrow ranges of activity is called?

Question

Within relevant range, cost function which cost does not change in narrow ranges of activity is called?

fixed cost function
variable cost function
step variable cost function
step fixed cost function

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

Answer: Option 3

Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.