Which of the Following Is a True Statement Relating to Step

question 101

Multiple Choice

Which of the following is a true statement relating to step costs?

• A)Step costs remain constant over only a small range of activity.
• B)Step costs do not contain a fixed component.
• C)Step costs are also referred to as fixed costs.
• D)Step costs do not vary proportionately over a small range of activity.

---

Definitions:

Consumption

Consumption involves the use of goods and services by households, representing one of the primary components of economic activity and an indicator of economic health.

Total Cost

Represents the complete expense incurred in the production of goods or services, combining both fixed and variable costs.

Price of Cheese

The amount of money required to purchase a specific quantity or unit of cheese.

Utility Function

A mathematical expression that measures a consumer's satisfaction or happiness from consuming various bundles of goods and services.