Which of the Following Is Not a Nonlinear Cost Function

question 46

Multiple Choice

Which of the following is not a nonlinear cost function?

• A) increase of $20,000 revenues with increase in sales in units
• B) total fixed cost of $25,000
• C) variable cost of $5 per unit
• D) a step cost function

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Definitions:

Price Elasticity

A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.

Perfectly Inelastic

Perfectly inelastic describes a situation where the quantity demanded or supplied does not change in response to a change in price.