Which of the following statements is TRUE of the behavior of total fixed costs,within the relevant range?
A) They will remain the same as production levels change.
B) They will increase as production decreases.
C) They will decrease as production decreases.
D) They will decrease as production increases.

Question

Quizplus · Accepted Answer

Total fixed costs are those costs that do not change with changes in production levels within the relevant range. Therefore, option A is true. Options B, C, and D are incorrect because they suggest that total fixed costs would change with changes in production levels, which is not the case within the relevant range.

Which of the Following Statements Is TRUE of the Behavior