What Is a Plausible Explanation of a Cost Function Has

question 7

Multiple Choice

What is a plausible explanation of a cost function has a slope coefficient of $30 for purchases of 1 to 1,000 units and $25 for production of 1,100 - 2,000 units, and $20 for production of 2,001 - 3,000 units

• A) the fixed cost per unit has decreased because of efficiencies
• B) economies of scale allowing for lower cost purchases with larger orders
• C) their is a linear cost function in effect
• D) contribution margins are decreasing

---

Definitions:

Filaments

Long, thin structures found in many organisms, such as the stamen of flowers or muscle fibers, and are often involved in structural or motility functions.

Sheets

Thin, broad pieces of material, such as metal, paper, or fabric, used for various purposes.

Pseudopodia

Temporary, foot-like extensions of a cell's surface, used for movement and ingestion by some single-celled organisms.

False Feet

Also called pseudopodia, these are temporary projections of the cytoplasm found in some eukaryotic cells, used for movement and feeding.