As production decreases, fixed costs per unit ____.
A) increase
B) decrease
C) remain the same
D) cannot be predicted

Name: As production decreases, fixed costs per unit ____. A) increase B) decrease C) remain the same D) cannot be predicted
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Question

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of production. As production decreases, the fixed costs still need to be covered, resulting in a higher fixed cost per unit.

As Production Decreases, Fixed Costs Per Unit ____