With a Step Fixed-Cost Function ________

question 180

Multiple Choice

With a step fixed-cost function ________.

• A) the cost varies with the changes in the activity
• B) fixed cost is often approximated with a continuous variable-cost function
• C) fixed cost changes proportionally with the level of activity
• D) the cost remains the same over wide ranges of the activity in each relevant range

---

Definitions:

Enhanced Versatility

Improved ability of a product, service, or system to adapt to a wide range of functions or activities.

Law of Diminishing

Refers to the principle that as the quantity of a good or input increases, holding all else constant, the added benefit from an additional unit will eventually decline.

Marginal Costs

The increase in total cost that arises from producing one more unit of a product or service.

Stolen Goods

Items that have been taken without permission or acquired through illicit means, with ownership not legally transferred.