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

Question

Quizplus · Accepted Answer

A lower slope coefficient in a cost function typically indicates that variable costs per unit of production have decreased, which could be a result of successful cost-cutting initiatives.

A Cost Function with a Lower Slope Coefficient Than a Year