Which of the Following Is NOT a Weakness of the High-Low

question 80

Multiple Choice

Which of the following is NOT a weakness of the high-low method?

• A)Only two observations are used to develop the cost function.
• B)The high and low activity levels may not be representative.
• C)The method does not detect if the cost behaviour is nonlinear.
• D)The method is relatively complex and difficult to apply.

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Definitions:

Economic Problem

The fundamental issue arising from the scarcity of resources relative to human wants, necessitating choices and prioritization in the allocation of resources.

Policy Change

Alterations or adjustments made by government or organizations in existing policies to address new issues or improve outcomes.

Public Reaction

The response of the general public to a particular action, event, or situation, often influencing public opinion and policy.

Passive Approach

A strategy or method in various contexts, including investing or policy-making, that involves minimal or no intervention.