Q416
Cost function, in which graph of total cost would not result in straight line is classified as
A.
nonlinear cost function
AnswerB.
linear cost function
C.
linear price function
D.
nonlinear price function
Answer: Option A
Solution
Answer: Option A
Solution:
Cost function, in which graph of total cost would not result in straight line is classified as nonlinear cost function. A nonlinear cost function is a cost function where, within the relevant range, the graph of total costs versus the level of a single activity related to that cost is not a straight line.