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

Question

Quizplus · Accepted Answer

When output increases, the total fixed cost remains the same, while the total variable cost increases. Therefore, the per-unit fixed cost decreases as it is spread over a larger number of units, resulting in economies of scale.  The total mixed costs may or may not change as it includes both fixed and variable components.

If Output Increases,what Is the Result