Automation results in a shift away from variable costs toward more fixed costs.

Name: Automation results in a shift away from variable costs toward more fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Automation typically involves investing in machinery or technology that has a high fixed cost but can produce goods or perform tasks more efficiently and with lower variable costs over time. This shift in cost structure allows companies to lower their per-unit costs as they increase production volume, ultimately increasing profitability.

Automation Results in a Shift Away from Variable Costs Toward