If output increases, what will result?
A) Total mixed costs will decrease.
B) Per-unit fixed cost will decrease.
C) Total variable costs will decrease.
D) Total mixed costs will stay the same.

Question

Quizplus · Accepted Answer

If output increases, the fixed costs are spread over a larger number of units, resulting in a decrease in per-unit fixed costs. Other costs such as variable costs and mixed costs may or may not be affected by an increase in output.

If Output Increases, What Will Result