As the volume of output decreases, the fixed cost per unit of output increases.

Name: As the volume of output decreases, the fixed cost per unit of output increases.
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Question

Quizplus · Accepted Answer

When the volume of output decreases, the fixed cost is spread over a smaller number of units, which leads to an increase in fixed cost per unit of output. This means that as output decreases, the fixed cost per unit of output increases.

As the Volume of Output Decreases, the Fixed Cost Per