A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

Name: A decrease in production will ordinarily result in a decrease in fixed production costs per unit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed production costs are those costs that do not vary with the level of production, such as rent and salaries. Therefore, a decrease in production will not affect these costs per unit, since they remain fixed regardless of how much is produced.

A Decrease in Production Will Ordinarily Result in a Decrease