Fixed costs per unit is inversely proportional to the volume of units produced.

Name: Fixed costs per unit is inversely proportional to the volume of units produced.
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Question

Quizplus · Accepted Answer

In general, as the volume of units produced increases, the fixed costs per unit decrease as the costs are spread over a larger number of units. This relationship is often referred to as economies of scale. Therefore, fixed costs per unit are inversely proportional to the volume of units produced.

Fixed Costs Per Unit Is Inversely Proportional to the Volume