Within relevant range, cost function which cost does not change in narrow ranges of activity is called

A. fixed cost function

B. variable cost function

C. step variable cost function

D. step fixed cost function

Answer: Option C

Solution(By Examveda Team)

Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.