A decrease in the level of production results in decreased fixed cost per unit.

Name: A decrease in the level of production results in decreased fixed cost per unit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs are those costs that do not change with the level of production, such as rent, insurance etc. Therefore, a decrease in the level of production does not affect fixed cost per unit, which remains constant regardless of the level of production.

A Decrease in the Level of Production Results in Decreased