If production increases within a given range, fixed costs per unit will:
A) Decrease
B) Increase
C) Stay constant
D) Vary depending on the source of the fixed costs
E) None of the above

Question

Quizplus · Accepted Answer

Fixed Costs overall will remain constant, but as production increases the costs will be spread across more units, and so fixed cost per unit will decrease.

If Production Increases Within a Given Range, Fixed Costs Per