A cost function with a lower slope coefficient than a year ago could indicate that:
A)total variable costs have decreased
B)new cost-cutting initiatives are beneficial
C)production has decreased
D)rental costs have decreased

Question

Quizplus · Accepted Answer

A lower slope coefficient in a cost function suggests that the variable cost per unit has decreased, which could be due to successful cost-cutting initiatives.

A Cost Function with a Lower Slope Coefficient Than a Year