The correct answer is: D. semi variable cost function
A semi-variable cost is a cost that has both fixed and variable components. The fixed component of a semi-variable cost remains constant over a given range of activity, while the variable component changes in proportion to the level of activity.
In the case of production inputs that are to be used in discrete functions, but quantities are fractional, the cost of the inputs will be a semi-variable cost. This is because the cost of the inputs will be fixed for a given level of activity, but will increase as the level of activity increases.
For example, if a company produces widgets, the cost of the materials used to produce the widgets will be a semi-variable cost. The cost of the materials will be fixed for a given level of production, but will increase as the level of production increases.
The other options are incorrect because they do not accurately describe the cost pattern in question.
- Option A, continuously variable cost function, is incorrect because it describes a cost that changes in direct proportion to the level of activity. In the case of production inputs that are to be used in discrete functions, but quantities are fractional, the cost of the inputs will not change in direct proportion to the level of activity.
- Option B, fixed cost function, is incorrect because it describes a cost that remains constant over a given range of activity. In the case of production inputs that are to be used in discrete functions, but quantities are fractional, the cost of the inputs will not remain constant over a given range of activity.
- Option C, mixed cost function, is incorrect because it describes a cost that has both fixed and variable components. In the case of production inputs that are to be used in discrete functions, but quantities are fractional, the cost of the inputs will be a semi-variable cost, which is a type of mixed cost.