Which of the following is true when output decreases?
A) Total fixed costs remain the same
B) Semi-mixed costs increase
C) Per-unit step costs decrease
D) All of these are correct.

Question

Quizplus · Accepted Answer

When output decreases, total fixed costs remain the same because these costs do not vary with changes in output. Semi-mixed costs and per-unit step costs may or may not change depending on the specific cost structure, but there is no general rule that states they must increase or decrease when output decreases.

Which of the Following Is True When Output Decreases