A Nonlinear Cost Function

question 108

Multiple Choice

A nonlinear cost function

• A) has two constants and a single slope.
• B) does not effectively describe the behaviour of costs all of the time.
• C) never describes the behaviour of costs in relation to the cost driver.
• D) always describes the behaviour of costs in relation to the cost drivers.
• E) means the relevant range cannot be determined for that cost.