An expenditure schedule in which the average outlay changes with the number of units purchased is
A) Block tariff
B) Nonlinear outlay schedule
C) Average expenditure
D) Usage charges

Question

Quizplus · Accepted Answer

A nonlinear outlay schedule is one in which the average outlay changes with the number of units purchased. This means that as more units are purchased, the average cost per unit may decrease or increase, depending on the specific schedule. A block tariff is a type of nonlinear outlay schedule where the price per unit changes at certain threshold levels, so it is a specific type of nonlinear schedule. Average expenditure and usage charges do not necessarily indicate a relationship between the number of units purchased and the average outlay, so they are not the best choices in this case.

An Expenditure Schedule in Which the Average Outlay Changes with the Number