If a firm increases its activity level
A) costs should remain the same.
B) most costs will rise.
C) no costs will remain the same.
D) some costs will change others will remain the same.

Question

Quizplus · Accepted Answer

Some costs will change (such as variable costs that increase with higher activity levels), while others will remain the same (such as fixed costs that do not vary with activity levels). Therefore, it is not accurate to say that costs will either all rise or all remain the same.

If a Firm Increases Its Activity Level