If one were to apply a linear cost function to labor, the implication would be that
A) the time to make an additional unit increases over time.
B) the time to make each additional unit decreased over time.
C) each unit requires the same amount of time to produce.
D) there is an inverse relationship between cost and the cost driver.

Question

Quizplus · Accepted Answer

A linear cost function implies that the cost per unit is constant, meaning each unit requires the same amount of time to produce.

If One Were to Apply a Linear Cost Function to Labor