Within the relevant range, as a company's level of production increases, fixed costs
A) will remain the same in total and the per unit amount will decrease.
B) increase in total, but decrease the per unit amount.
C) increase in total, but remain the same per unit.
D) decrease in total, but the per unit amount may increase or decrease.

Question

Quizplus · Accepted Answer

Fixed costs remain constant in total within the relevant range, but as production increases, the fixed cost per unit decreases because the same total cost is spread over more units.

Within the Relevant Range, as a Company's Level of Production