Nonlinearity and Cost Functions Multiple Choice Questions with Answers – PDF Download

MCQ 1: The cost function, in which cost does not change with any change in level of activity is a part of:

1. step price functions
2. step object functions
3. step constant functions
4. step cost functions

MCQ 2: The cost pattern, in which production inputs are to be used in discrete functions, but the quantities are fractional, will be categorized as:

1. continuously variable cost function
2. fixed cost function
3. mixed cost function
4. semi variable cost function

MCQ 3: The cost function, in which the graph of total cost would not result in straight line is classified as:

1. nonlinear cost function
2. linear cost function
3. linear price function
4. nonlinear price function

MCQ 4: In step cost functions, the cost is increased by:

1. discrete amounts
2. same amounts
3. linear amounts
4. nonlinear amounts

MCQ 5: Within the relevant range, the cost function in which cost does not change in narrow ranges of activity is called:

1. fixed cost function
2. variable cost function
3. step variable cost function
4. step fixed cost function