Select the appropriate type of cost for each of the definitions listed below.
-will decrease on a per-unit basis as output increases
A)variable
B)fixed
C)mixed
D)step

Question

Quizplus · Accepted Answer

Fixed costs remain constant in total but decrease on a per-unit basis as the level of output increases. This is because the same total fixed cost is spread over more units, reducing the cost per unit.

Select the Appropriate Type of Cost for Each of the Definitions