A fixed cost function which changes at some point but remains constant after the change is called a:
A) piecewise linear cost function
B) stepwise linear cost function
C) mixed cost
D) none of the above

Question

Quizplus · Accepted Answer

A stepwise linear cost function is characterized by fixed costs that remain constant over a range of activity, but then jump to a different fixed level once a certain threshold is crossed, which aligns with the description given.

A Fixed Cost Function Which Changes at Some Point but Remains