Within the relevant range, which of the following statements is true with respect to fixed costs per unit? A. They will increase as production decreases. B. They will increase as production increases. C. They will decrease as production decreases. D. They will remain the same as production levels change.

Question

Business

Kristin Whitaker

19 May, 20:32

Within the relevant range, which of the following statements is true with respect to fixed costs per unit? A. They will increase as production decreases. B. They will increase as production increases. C. They will decrease as production decreases. D. They will remain the same as production levels change.

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Answers (1)

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Lala · Answer 1

The right answer is, A. They will increase as production decreases.

Explanation:

Because the cost of production and the units produced are indirectly proportional, since the cost is distributed in the units to be produced, then as the units decrease the cost of each of them will increase, and if the production increases the cost decreases because It is distributed among more units.