1. A manager should focus his or her attention on what will happen to costs at all points of production, even if those points are unrealistic or not currently relevant.

True

False

1. A manager can only assume linear behavior of costs within the "relevant range".

True

False

1. Fixed per-unit costs decrease proportionately within the relevant range.

True

False

1. While fixed costs remain constant over the relevant range, most fixed costs can change in the long run, and are often best described by a step cost pattern, given a sufficiently long horizon.

True

False