As production increases within the relevant range, fixed costs per unit
A) decrease.
B) increase.
C) stay the same.
D) cannot be determined with the information given.

Question

Quizplus · Accepted Answer

Fixed costs remain constant within the relevant range, so as production increases, the fixed costs are spread over a larger number of units, resulting in a decrease in fixed costs per unit.

As Production Increases Within the Relevant Range, Fixed Costs Per