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

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

Quizplus · Accepted Answer

Fixed costs refer to expenses that do not change with the level of production, such as rent or machinery upkeep. When production decreases, these fixed costs are spread over fewer units, thus increasing the fixed costs per unit.

As Production Decreases,fixed Costs Per Unit ____