What is a plausible explanation of a cost function

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Reference no: EM131724028

What is a plausible explanation of a cost function that has a slope coefficient of? $30 for purchases of 1 to? 1,000 units and? $25 for production of? 1,100

minus−

?2,000 units, and? $20 for production of? 2,001

minus−

?3,000 units.

A. their is a linear cost function in effect

B. economies of scale allowing for lower cost purchases with larger orders

C. the fixed cost per unit has decreased because of efficiencies

D. contribution margins are decreasing

Reference no: EM131724028

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