Within the relevant range:
A)variable cost per unit decreases as production decreases.
B)fixed cost per unit increases as production decreases.
C)fixed cost per unit decreases as production decreases.
D)variable cost per unit increases as production decreases.

Question

Quizplus · Accepted Answer

Within the relevant range, fixed costs remain constant in total, so as production decreases, the fixed cost per unit increases because the same total cost is spread over fewer units.

Within the Relevant Range