An increase in volume within the relevant range will cause:
A) Unit fixed costs to increase.
B) Unit variable costs to decrease.
C) Total fixed costs to stay the same.
D) Total variable costs to decrease.

Question

Quizplus · Accepted Answer

Total fixed costs remain constant regardless of changes in the volume of production within the relevant range, meaning they do not change as the volume of production increases or decreases.

An Increase in Volume Within the Relevant Range Will Cause