Describe three alternative linear cost functions ?
1. Variable Cost Function: A cost function in which total costs change in proportion to the changes in the level of activity in the relevant range.
2. Fixed Cost Function: A cost function in which total costs do not change with the changes in the level of activity in the relevant range.
3. Mixed Cost Function: A cost function that has both variable and fixed elements. Total costs change but not in proportion to the changes in the level of activity in the relevant range.
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