Modern technology is causing shifts away from variable costs toward more fixed costs in many industries.

Question

Quizplus · Accepted Answer

Modern technology has led to automation and digitization which have reduced the need for human labor and increased the reliance on capital-intensive technology. This has resulted in a shift towards more fixed costs such as investments in equipment, software, and infrastructure rather than variable costs such as labor and materials.

Modern Technology Is Causing Shifts Away from Variable Costs Toward